Understanding the Growth at All Costs Mindset

'Growth at all costs' mindset may kill your startup 💀 Back in the days (2020-2023), the typical advice you'd hear as a VC-backed startup was "spend more". The main approach was to be maniacally focused on growth and grabbing a bigger market share. The founders were acting like hungry hyenas pouring money into everything that brings growth, overhiring, overspending, and doubling down on untested channels that might bring growth. Growth, growth, growth! (in Steve Ballmer's "developers, developers, developers" voice) 🌱 In the last couple of months, I've seen a lot of startups going down because of this mentality. However, the 'growth' is not the problem. The uncontrolled growth and constant stepping on the gas pedal without a working engine is. It's really easy to get into this GAAC (Growth at all costs) mindset before even remotely figuring out, be blinded by the Silicon Valley stories about raising hundreds of millions in Series A, and hope that VC money will always be here to save your company when the things go south. If you don't figure it out fast, if you don't have control over the direction you are going, and if you are not obsessed with building a real business the chances of failing are pretty high nowadays. In June 2023, we were 3 months away from bankruptcy, burning $35-40K per month. It was a wake-up call for us. 🔹 Lesson learned: Keep it lean until you are pretty positive that you know what you are doing, and you have a pretty good feeling and data informing you that you are ready to scale, burn, and double down on growth. 2024 is the year of predictable and controlled growth with a focus on profitability. Even for VC-backed startups (that are in the process of raising their next round). 📈

This is me in 2012—on the surface, I looked like I was succeeding by society’s standards. I had a business, I was working hard, I was “on track.” But the truth? Inside, I was struggling more than anyone knew. In 2013, after my first business failed, I felt so ashamed, so helpless, and so buried in debt that I considered suicide as my only way out. I never told anyone, friends, family, peers, I kept it completely hidden. Looking back, I realise that part of this silence was due to the mechanistic business system we’re conditioned to operate in. A system that values productivity, efficiency, and profit above all else, with no room for mental health, personal struggles, or vulnerability. It’s this very system that drives many of us to burnout, anxiety, and depression — and it’s a system I’ve worked hard to unlearn over the years. A study in 2015 found that 72% of entrepreneurs are dealing with at least one mental health issue—whether it’s depression, anxiety, ADD/ADHD, or addiction. And yet, 88% of people aged 16-24 say they’d still tell their friends and family they’re “fine,” even if they’re struggling inside. These stats hit hard because I’ve lived through them. And i know a lot of other entrepreneurs have too. And I still see this narrative—growth at all costs—pushed by mainstream media and much of the business ecosystem. It’s damaging, and it’s deeply entrenched. The more I reflect, the more I realise I’ve carried these mechanistic scars with me into my career. It’s taken time and intentional effort to unlearn those toxic habits and replace them with something healthier. The truth is, businesses that prioritise growth without considering the wellbeing of their people are destined to break down. At Zebra Growth, we’re working to shift that narrative. We’re beginning to have more open conversations about mental health. The mechanistic business system teaches us to ignore our human needs and view ourselves as cogs in a machine. But there’s another way—a living systems approach, where businesses value health, balance, and connection just as much as profit. So, who else has felt the weight of these challenges in their career? What’s being done to support entrepreneurs navigating these challenges now? I'm curious to learn more. If you’re feeling the weight of these challenges, know that you’re not alone. #MentalHealth #Entrepreneurship #LivingSystems #RegenerativeBusiness #BusinessHealth #SupportForEntrepreneurs

I hear a lot of founders go on about how they need to "grow at all costs." But here's what they overlook: You can grow 100% quarter over quarter... and still be worthless. Look, I get it. Especially in the VC-backed world, the "need to spend money to make money" mindset is drilled into you from day one. You raise capital, and now your entire job is to grow the company as fast as humanly possible. The problem is, if you're not profitable, or at least clear on your path to profitability, that growth means absolutely nothing. That's why at Exitwise, Todd and I know where every single dollar is going. We’re building something purposeful, and we treat every decision like it’s our own money — because it is. We've bootstrapped this thing from the ground up. That’s the big difference. Because when you raise a $20M round, you’re hiring people left and right. You’re bringing on vendors, advisors, and partners without vetting them first, something you'd NEVER do if it were coming out of your personal bank account. But before long, you lose the discipline that made the company great in the first place. At the end of the day, it doesn't matter if you're VC-backed or bootstrapped. The same principle applies: Growth and revenue are meaningless if you're not making a profit. Build accordingly.

Five years ago, marketers chased companies with big VC funding Growth at all costs was the exciting career path Now they're asking me about profitability and runway first There's been a dramatic shift in what top marketing talent looks for in their next role. During my calls with candidates, I'm noticing a consistent trend that wasn't there just a few years ago. Where marketers once flocked to startups boasting about their latest funding round and aggressive growth targets, they're now asking very different questions: "What's their runway?" "Are they profitable yet or at least heading toward profitability?" "How sustainable is their business model?" This shift isn't surprising. After waves of layoffs across consumer brands over the past few years, marketing professionals have learned the hard way that "growth at all costs" often has an expiration date – and they're the ones who suffer when the money runs out. With VC funding becoming more selective for consumer brands, companies can no longer use big cash injections as their primary recruiting tool. Instead, candidates want reassurance that they won't jump ship only to be made redundant six months later when the runway shortens. The most sought-after employers now are those who can demonstrate fiscal responsibility alongside their growth ambitions. Smart marketers have realized that sustainable growth environments provide more long-term career development than the boom-and-bust cycle of heavily funded but unprofitable companies.

Growth at all costs isn’t sustainable growth. In the early days of Subject, like many startups, we cheered on funding rounds and rapid growth. But as we’ve matured, we’ve learned to celebrate something a little different: efficiency. It’s not as flashy as raising VC funds. But it’s the true path to sustainability. 2024 was our year of transformation. We set a ceiling for our net burn - and with a lean team averaging 20 employees, we managed to double our revenue while coming under that net burn ceiling by 90%. By mid-year, we were cash-flow positive. How? We focused on meaningful execution, like tracking productivity per person and supporting in-person team collaboration. We’ve come a long way since those early days of growing as fast as possible. It took a lot of work to mature and improve so much as a company, and I couldn’t be more grateful for how those experiences have made me a better leader. Each experience taught us that sustainable success is about making choices that stand the test of time. Turns out the biggest thrill is in building something that’s here to stay.

VC Confidential: Founders, beware of growth-at-all-costs advice It makes me cringe every time I hear a founder tell me that a potential investor asked: “What would it take to double or triple ARR next year?” Sounds flattering, right? But here’s the problem: that mindset is a leftover from the ZIRP-era sugar high, when capital was cheap, growth was worshipped, and profitability was optional. Too many VCs are still addicted to this playbook. Why? Because you’re one bet in their portfolio. If you flame out, they move on. But for you, the founder, this is your life. Your one shot. Let’s talk truth: Growth hides a lot of problems: tech debt, culture cracks, bad hires. Capital isn't free and it's certainly not neutral. Every fundraise isn’t just a celebration. It’s a decision to push your off-ramp further down the road. Before you raise another round, do the math: 👉 How much of your company do you still own? 👉 How big would the exit have to be to match your current potential? 👉 Are you being pushed to raise because you want to, or because your VC wants you to? I’m not saying don’t grow. I’m saying grow with eyes wide open. Capital should enable optionality, not trap you in a game you didn’t sign up for. Let’s stop glorifying burn and get back to building businesses that last. Founders: Have you ever felt pressure to chase unrealistic growth targets from VCs? What did you do? I’d love to hear your experience. #FoundersFirst #VCTruths #CapitalEfficiency #StartupLife #ZIRPDetox #VCConfessions

“Move fast and break things” sounded thrilling—until founders started breaking trust. Is “growth at all costs” turning today’s startups into tomorrow’s scandals? Beanbags, free lunches, ping-pong tables: for years, American startup culture was the blueprint Indian founders followed. But Facebook’s rallying cry “move fast and break things” bred a mindset where the founder is always right and rapid scale excuses every shortcut. When “Growth” Becomes a Blind Spot Blind Trust in Founders Investors chase charisma and valuations, sometimes ignoring red flags. BluSmart’s Fall. Some early backers sensed trouble and walked away, yet the company kept raising funds while allegedly misusing loans. Theranos Déjà Vu Elizabeth Holmes showed how a magnetic vision can hide massive fraud until it can’t. Why Ethics Must Catch Up to Scale → Governance Over Glamour: Audits, transparency, and steady growth beat flashy press releases. → Substance Over Hype: Real traction > vanity metrics. → Accountability Over Hero Worship: A founder’s vision should be questioned, not worshipped. Over to You Are we rewarding charisma and scale more than transparency and substance? How can startups balance bold growth with solid governance? Share your take! #startups #entrepreneurship #leadership #business

Growth is meaningless if the business can't survive. The 'growth at any cost' era is dead. A couple of years later and a plethora of failures that followed, investors have learned a vital lesson. They now want to see founders worry about staying alive before they worry about getting famous. While the current generation of founders is superb and AI is unlocking huge potential, you cannot follow the blueprint of giants like Open AI and X. They can afford to run at a loss; most businesses cannot. The New Blueprint Financial Discipline is Key: Investors are looking for founders who can maximise the financial resources they have, rather than bouncing from round to round. Prioritise CFBE: Your focus must be on achieving Cash Flow Break-Even (CFBE). You should be doubling down on what drives cash back into the business. Build for Survival: The valuation you earn from running a lean, disciplined business is the only one investors truly respect in the current climate. The biggest lesson is that growth is meaningless without a solid foundation. You must prioritise survival and financial discipline first. Investors today expect founders to double down on what drives cash back into the business, proving they can stand on their own. If you are building a more open investment landscape, where community, access and strong brand stories drive momentum, you can subscribe to my newsletter here on LinkedIn. It is where I share what we are learning as more people get the chance to back the businesses they believe in.

Growth-at-all-Costs makes sense when NRR is 100% or higher. The problem many startups face is pushing too soon into the GaaC model while they're actually suffering from a leaky bucket (churn). If your product retention isn't stellar, raising capital and promising hyper-growth to investors is a tough road to travel because your priority immediately becomes sales & marketing when it needs to be product and user experience. Once your priority becomes sales and marketing, it's nearly impossible to ever make your product the priority again, it always takes a back seat because there can only be one front seat. There's no way to reverse this momentum without something like a down round or massive change in plans that investors are unlikely to agree to. For this reason, the best startups of the future will take their time flawlessly perfecting their product before pushing for hyper-growth. Learn from the mistakes of those who came before you. Salespeople, work only for companies who do this correctly. Yesterday I spoke to Colin Specter🥇 on this topic and more. Check the featured section of my profile for the full conversation. It's LOADED with golden nuggets.

"Growth is a vanity metric; profit is a sanity metric." For the last decade, the startup ecosystem has worshipped at the altar of top-line growth. We celebrated the "burn" as a badge of honor. But recently we have seen too many unicorns die not because the tech failed, but because the metabolism of the company was toxic. Its a great lesson that we all should learn from. Growth is a vanity metric if it’s fueled by an expensive debt. The Biology of a Sustainable Startup In medicine, uncontrolled growth without structural integrity isn’t called "scaling," it’s called a tumor. The same applies to venture building. If your "success" relies on the next infusion of venture debt or a predatory bridge round, you aren’t building a business; you’re managing a countdown. True wealth isn't created in the "explosions," it’s created in the compounding. What "Quality Growth" Actually Looks Like: Organic Unit Economics: Can you acquire a customer today using the profit you made from the one yesterday? The Compounding Effect: Real value comes from retention and flywheels, not just "buying" market share that disappears the moment the subsidies stop. Internal Accruals: External Debt: When your growth is funded by your own operations, you own your destiny. When it’s funded by debt, your lenders own your vision. The Shift in 2026 I thing the shift has begun from the era of "Growth at All Costs" to the era of "Resilient Precision." Investors are no longer looking for the fastest burner in the room; we are looking for the most efficient engine. We want companies that can survive a "funding winter" because they carry their own heat. Bottom line: Don't just grow. Endure! Founders: What is a common belief in our industry that we are intentionally betting against? Investors: What was your most 'successful' failure, the one that looked like a disaster on paper but taught you the most about compounding wealth? #Entrepenuership #VentureCapital #Startups #SustainableGrowth #BioTech #Innovation #FounderMindset American Association for Precision Medicine (AAPM) WISE World Investors & Entrepreneurs Society