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11 September 2011
Since February we've amassed a dataset of over 3200 high growth technology startups. Our latest research found that the primary cause of failure is premature scaling, an affliction that 70% of startups in our dataset possess.
The difference in performance between startups that scale prematurely and startups that scale properly is pretty striking. We found that:
- No startup that scaled prematurely passed the 100,000 user mark.
- 93% of startups that scale prematurely never break the $100k revenue per month threshold.
- Startups that scale properly grow about 20 times faster than startups that scale prematurely.