[tobyjsullivan]

Is the commonality tech companies or high-growth companies?

(Virtually all high-growth companies are tech companies but I don’t think the inverse is true - unless that’s how we define “tech” now which is plausible.)

High-growth companies include both those that plan to grow fast and those that are growing fast. The general theory is nobody really knows how big such a company can grow. (eg, Amazon circa 2006 is dominating e-commerce. Can it get any bigger? Spoiler: yes it can.)

So these companies offer an opportunity: invest money to build more teams doing effectively random trials and see what sticks.

This is the investment opportunity the parent comment described and that’s the calculus that’s changed.

What I find interesting is the same trade-off applies to both profitable and unprofitable companies. Unprofitable startups are deciding where to burn their runway, weighing against the projected cost of raising on more. Profitable companies are deciding where to re-invest profits or whether to pay dividends to shareholders.

[pyuser583]

A lot of tech companies have been pretending to be high growth startups, but are really utilities.