Jason M. Lemkin says startups don't need rocket ship growth to succeed. Tech acquirers like Salesforce and Twilio want fast growers, but private equity will buy steadier businesses growing 30% annually if they burn cash slowly.
So you have this step off point as founders. If you can just get to 20 with even mediocre growth. You do not have to be a rocket ship. This is not obvious. You might need to be a rocket ship to get bought by Salesforce or Twilio or something because they want to buy a rocket ship. Right? You might have to be growing 100% at 20 million to get bought by a tech company, but you can probably get bought BY PE at 30% if you don't burn nothing. Right? So that is all coming back. There's a surplus of capital in terms of corporate M and A. The Adobe is buying the Figmas and Salesforce is buying Slack. That's murky because things are much better for public SaaS companies now than 12 months ago. That was my opener.
