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A Summary of

Hypergrowth and The Law of Startup Physics  

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First Round Review
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The Law of Startup Physics

  • The phenomenon of startup scaling-and-breaking under one main principle: “humans grow linearly, companies grow exponentially.”
  • While humans cannot be reengineered to grow faster, companies may grow from serving a hundred clientele to a million within the span of a year.
  • Humans formulate a vision for a startup along with an exciting story and organize an effort to produce the end result.

Companies will outgrow its people

Growth outpaces the ability of executives to manage the startup. 1. A company will turn its team over three times on its rise to scale, not because the lack of growth in the people, but rather because the speed in which their growing stalls progression. 2. As a result, a company has two options: - Fire the executive - when ego acts as a barrier to success - Hire above the executive Based on employment data, one may expect to stay with the company between 18 months and three years.

Founders should make a pledge

  • Sets expectations for an objective of growth
  • Provides career definition
  • Establishes trust

The founder is an exception to this law

The founder is responsible for exponential thought, fueling the company’s vision. Peak positive emotions through interactions with the outside world leads to peak performance. By making a pledge to “get out of the building,” the founder… - Sets an example that promotes the performance of the organization as a whole - Increases his or her personal performance - Stimulates creativity and problem solving

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