Why Do VC Funded Startups Love "Fake Growth?"

In today’s Startup Therapy Podcast, Wil and Ryan discuss why some founders tend to go on the “fake growth” route. Some Startup companies may look like they are soaring and scaling real fast but in reality, these Startups are spending more than they are getting back from revenue. So how can you identify if you, as a founder, are going the real growth route or the fake growth route?

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
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• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 02:20 Fake Growth vs. Revenue
• 05:20 Some people are raising the same money as you, but in a different story
• 06:54 Why momentum is attractive to investors?
• 08:18 Staffing 
• 11:45 If your fake growth becomes successful, you’re a hero
• 17:48 When everything was going the right direction until it wasn’t
• 19:24 It’s like a Ponzi scheme
• 24:09 The employee and the stockholders
• 27:50 Founders who experienced this shows contrition