This research paper examines the common startup strategy of rapid scaling and challenges the notion that it always leads to success. The authors analyze data on over 6 million job postings from U.S.-founded startups and discover that scaling within the first year increases the risk of failure, particularly for two-sided platform companies. The paper argues that early scaling can lead to premature commitment to a strategy before it is fully refined. The study emphasizes the importance of experimentation and A/B testing to validate assumptions before scaling, as this can mitigate the risks of early scaling. The authors ultimately advocate for a more patient approach to scaling, suggesting that focusing on product-market fit and experimentation can lead to a more sustainable and successful startup trajectory.
