This is a very "classic psychology" view. As usual there are alternative views and in this case specifically: http://en.m.wikipedia.org/wiki/Signalling_theory h

This is a very "classic psychology" view. As usual there are alternative views and in this case specifically: http://en.m.wikipedia.org/wiki/Signalling_theory http://en.m.wikipedia.org/wiki/Signalling_theory http://en.m.wikipedia.org/wiki/Handicap_principle http://en.m.wikipedia.org/wiki/Handicap_principle A startup world interpretation, in a nutshell - the reason we value organic growth or the achievement of a small team is that they are "honest signals". They are "honest signals" because the were achieved while "handicapped" compared to achievement supported by more resources (ex. marketing budget, big teams etc.)