In these heady days of Internet startups with astronomic valuations and phantom profits, hypergrowth has become part of the furniture. We expect it, we re-arrange our financial lives around it, we consider it a byproduct of entrepreneurial genius. One thing we don't generally do is recoil at it. But perhaps we should, or at minimum, respect it a bit more.
Rapid growth is both a tonic for emerging companies and a potentially fatal elixir.
While every CEO strives to generate heat, hot companies burning through venture capital have a tendency to lose their way. Corporate cultures can be diluted virtually overnight, and knowledge transfer stopped before it has a chance to begin. Cash infusions bring talented people, but quick ramp-ups can also build walls and barriers, and obscure the vision of the founder. From a distance, it's rarely obvious who's making the prudent investments that ensure long-term success. If, however, you look closely, you can discern policies and practices that render growth an obstacle.