Toxic VC and the Marginal-Dollar Problem
Venture capital has a great expectation for growth and, with it, comes a great pressure to perform. In the quest to grow as big and fast as the Unicorn-crazed market expects, companies find themselves scaling with consequence. After all, not all growth is healthy growth. This article takes a contradictory look at the tough decisions start-ups must face to stay healthy in the face of VC funding.
- Growth at what cost? Growth without context can quickly become a vanity metric.
- VCs desire to “go big or go home” and what that means, even for successful teams.
- Inefficiences at scale can spell disaster (and even death) for a company.