The Era of Gentle Deceleration is DEAD! #shorts
In this YouTube short, Jason M. Lemkin declares that the era of "gentle deceleration"—a period when public markets tolerated modest slowing of growth for SaaS and tech firms—has ended. He argues that investors now demand substantial, accelerating revenue growth, especially for companies with large addressable markets. Lemkin uses Wix and its recent $100 million Base44 acquisition as a case study, noting that despite cross‑sell potential, Wix’s core customer count is flat and its growth has stalled; he suggests that only a $500‑$600 million revenue boost could meaningfully shift the narrative. The conversation then shifts to the broader market environment: Lemkin questions when private‑market investors should abandon portfolio companies that fail to accelerate, given that public markets have become unforgiving. Rory counters with examples of larger, more mature players—CrowdStrike, Microsoft, Google—showing that 25 % growth for a scaled firm is acceptable, and that expectations should be calibrated to size. Lemkin acknowledges the market’s brutality this year, emphasizing that even analytically sound growth rates are being rejected if they do not show acceleration. The short encapsulates a shift in investor sentiment, the heightened growth thresholds for both public and private tech companies, and the strategic dilemma of when to cut losses on under‑performing startups.
