Yeah, but that's why so many companies in the Valley fail. They hire way too fast (and often they hire too fast because investors are pushing them to hire so it

Yeah, but that's why so many companies in the Valley fail. They hire way too fast (and often they hire too fast because investors are pushing them to hire so it looks like they are growing like crazy). As an example/comparison: I worked for one startup on the East coast in the financial sector that had about $800 million in backing. We were profitable in 4 years and still had less than 100 people on staff. Compare that to Digg, which had well over 100 people on staff, with only $40 million in backing and much less revenue. There's no reason a company like Digg needs 100 people, or even 50 people.