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If you're hyper-growth, the needs of your startup will outgrow your team of 1-3 very quickly. You and your small team will get overwhelmed by either your infras
by hkarthik 12y ago
If you're hyper-growth, the needs of your startup will outgrow your team of 1-3 very quickly. You and your small team will get overwhelmed by either your infrastructure (servers melting down under load), customer support, or user acquisition costs.
The only way to keep up is to spend money addressing each of these areas. Unfortunately, hyper growth startups are rarely hyper-revenue startups so the money's gotta come from elsewhere. For at least a few years, you'll be outspending any incoming revenue to keep the growth engine going.
If you want to keep more equity then the best choice is to focus on sustainable growth. Take on customers only when you have the revenue to support them and make sure you monetize your growth very early. This is a perfectly acceptable strategy. Until a hyper-growth startup shows up as a competitor and is willing to burn investor cash to move 10x faster than you and doesn't need to worry about monetization strategies for a few years.