[...] As long as there is a chance, however small, for a company to become a billion-dollar supersuccess, the investor would rather push on. This means abandoning even surefire profit models if they aren’t going to generate the outlandish returns required by the venture capitalist’s overall portfolio strategy. He or she would prefer to let the company die, squeezing out every possible megawin, than let it carry on as a moderately successful enterprise. Without a major exit through acquisition or IPO, it is worthless on the level that venture capitalists are playing the game.
I’ve sat in on more than one board meeting, watching as investors teach their young company founders about the realities of the startup landscape and why they have to shoot for the stars. Every company must become the universal solution in its vertical—or more. You are not just a personal health app; you are the platform through which all health apps will be executed! You are not just a game; you are a gamification operating system and social network!
reading this makes me wanna cry cus that's exactly how we thought at macro. i remember that diagram on the whiteboard where we positioned ourselves as this universal layer underlying all these social networks. and we didnt even take VC. but we internalised all that bs logic anyway. sobbing rn