BS: BlitzScale :p
I believe one of the most detrimental growth strategies in the startup & VC world is the concept of Blitzscaling, coined by Reid Hoffman, the co-founder of LinkedIn, and Chris Yeh. In a crude sense, Blitscaling is growth at all costs that doesn’t optimize for profit or efficiency, just growth and growth fueled by VC money.
I find it difficult to absorb this style of building a company; it sounds very much against the fundamental business principles of building a sound business; instead, it relies on leveraging hyped-fueled venture capital money that is willing to fuel a Ponzi like no other day. This has many repercussions on society, people who work for the company, and the market overall. Also, it seems to be a very masculine approach to capitalism.
As a #NotVC being in the VC industry, it seems paradoxical that I am against the idea of Blitzscale. However, my reason is simple: I am allergic to hype, Ponzi schemes, unsustainable approach to company building, and too masculine approach to things. It is bonkers, as Charlie Munger would say.
Why do I find it troubling?
Neglects unit economics, quality, and actual product/market validation. Who on earth would a sound business leader do that? Just because it is fueled by money and has some exit success doesn’t mean it is the right way to build a business. As I said, it is a glorified Ponzi scheme or, at best, a not-for-profit that doesn’t care about customer centricity.
Obsession with growth overrides other priorities like ethics, compliance, and governance. Trust me, and I have seen so many companies who say they are mission-driven but employ extremely morally corrupt ways to justify growth, or they are just trying to Blitzscale lol. Don’t do that; what is the freaking point if you are trying to build a mission-driven company on one end and another you are having unethical & morally bankrupt ways to build the business.
Cult-ish » No tolerance for dissenting voices that raise concerns about the pace of growth or its consequences. Growth is the cult. It is the height of spiritual bankruptcy.
Customers don’t matter, why would they? What matters is to get a rich, quick scheme. Risks user experience and quality with rushed scaling.
Requires enormous capital investments that may never pay off, or retail investors suffer if it is taken to another glorified Ponzi scheme sold by Chamath - Special Purpose Acquisition Company (SPAC)
Masculine AF »
Focuses on domination, winning at all costs, crushing competitors - highly competitive, zero-sum mindset.
Promotes recklessness, shoots first, and asks questions later.
Rank and Yank culture, only the strong survive—the celebration of long hours and burning out.
Tendency to ignore human costs, employee wellbeing, and ethics in pursuit of speed and size.
Male Ego, Hubris, inflated confidence, and urgency fueled by rapid ascent.
“The world is full of foolish gamblers, and they will not do as well as the patient investors.”
Charlie Munger
Especially for building a conscious world, we need leaders & companies who are gentle to their employees, customers, society, and nature. The growth at all costs has not served humanity, the planet, and animals. We need to be non-conform and conservative simultaneously - it is easy to focus on just the growth dimension as that is one variable; it isn't easy to balance growth, financial sustainability & care for the people, planet, and animals. Don’t just follow because some Silicon Valley boy club of Ponzi schemers have written books on it and have been telling stories in a well-designed format.
Do a service to yourself, people, the planet, and animals by diving into these two pieces »
“It’s very difficult to invest money well, and I think it’s all but impossible to do time after time after time in venture capital… Some of the deals get so hot, and you have to decide so quickly, that you’re all just sort of gambling.”
Charlie Munger, Acquired Podcast
“Embracing sustainable economic practices can lead to more balanced and resilient ecosystems, aligning with the principles of conscious capitalism.”
Sagar Tandon, Shinise
And remember to question everything; don’t be a dumbfcuk!
“Ware tada taru wo shiru”
[I know what just enough is]
”meaning and satisfaction in a life in which individual took just enough from the world & no more”
from the book » Just Enough by Azby Brown
Sign-off for humanity,
Sagar
Follow me on LinkedIn» https://www.linkedin.com/in/sagartandon/
Mail me at » sagar@idexaccelerator.com / sagar@firstfollowers.co
Stay humble, stay curious 🌟🌟🌟!
Note: These are my personal opinion.
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