29 Aug '11, 7pm

Startup Genome: A web app to test if your startup is scaling prematurely

Startup Genome: A web app to test if your startup is scaling prematurely

Startup Genome: A web app to test if your startup is scaling prematurely August 30, 2011 by Terence LEE As many as 74% of failed startups are caused by premature scaling — this was the finding of the first Startup Genome report , which synthesized data from over 3,200 startups (read our summary ). But a new web app just launched could potentially reduce the casualty rate. Before I elaborate, let’s talk about what exactly is premature scaling first. There are five aspects to any startups: Customer, Product, Team, Business Model, and Financials. Premature scaling occurs when growth for one aspect of the startup stretches way ahead of the others, eventually causing the company to crash and burn if not course-corrected. Groupon has been deemed by this Harvard Business Review writer as a company that is on its way to failure because of the inability to balance the five plates. ...

Full article: http://sgentrepreneurs.com/commentary/2011/08/30/startup-...

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