The Startup
Published in

The Startup

The Return of Capital Efficiency

Capital efficiency has long been a desirable trait in early/growth stage businesses. But over the last few years, an abundance of capital combined with a “growth at all cost” mindset, allowed founders to deprioritize efficiency. Ignoring efficiency, however, can lead to making cardinal mistakes like misreading true product-market-fit, over-hiring for the stage you are in and burning through too much money too quickly. Furthermore, growth rate and top-line progress are a function of how much capital a business has consumed to get to that point (i.e. getting to $10M in revenue is less impressive if…

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Allen Miller

Allen Miller

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VC @ Oak HC/FT. LA || NY || SF. Disclaimer: any views or statements expressed are mine and not those of my employer.