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How quickly should a startup grow? How soon should you shift your focus from sheer growth to making a buck?
The downsides to high valuations are currently on prominent display.
Yahoo! is a company that has undergone a well-documented struggle for relevance over the years, and its assets cannot easily be absorbed by companies with more forward momentum because it is too expensive.
Twitter is an example of a company that went public amidst outsized expectations around its future and has struggled to live up to the hype. Bad leadership since the ouster of Dick Costolo hasn’t helped, and political meddling and general disdain for the wants and needs of its userbase have made things worse. But primarily, it is being held back by the expectations set with its $32 billion IPO.
It has little room to truly maneuver into a pace of operation that will serve it best, which, it is increasingly suggested, is probably at the size of its current userbase.
Grow quickly and worry about revenue later has been the mantra of the Silicon Valley startup scene for years, but if you’ve been paying any attention lately, you’ll know that sentiment is starting to change.
Continue reading %How Big Does Your Startup Really Need to Be?%