A short excerpt from a November 8, 2023 YouTube conversation in which an audience member asks Jason M. Lemkin why companies transition from hypergrowth to plateau. The work examines causes of growth plateaus and (later) emphasizes management-team changes as a key driver.
Question to you is.
Like what are.
The number one or two drivers? Why companies go from hyper growth to plateau? Why do they plateau?
Well I think they, they all do. I mean a few haven't but every single company I've invested in, Every True Unicorn 100 million more revenue or billion more cash exit all of them have had a plateau year. All 100 and others have tell other stories but it's always, it's always a combination of well it's almost, it's really always not rebooting the management team that's the real answer. It's always sticking with the 1.0 management team too long or al goalie for talking about Algolia. Nicholas was very clear on this. He waited until 40 million to build his first management team. That was way too long. And Nicholas's problem and he's been very direct about and this is a wildly successful company doing hundreds of millions. The problem is when you wait too long. Here's another problem founders have. If you wait too long to build your management team, it's like, it's kind of like the product conversation we had.
