The Agenda

‘Small Variations in Growth Rate Produce Qualitatively Different Outcomes’

Paul Graham has written a fun essay on startups and growth:

If you want to understand startups, understand growth. Growth drives everything in this world. Growth is why startups usually work on technology—because ideas for fast growing companies are so rare that the best way to find new ones is to discover those recently made viable by change, and technology is the best source of rapid change. Growth is why it’s a rational choice economically for so many founders to try starting a startup: growth makes the successful companies so valuable that the expected value is high even though the risk is too. Growth is why VCs want to invest in startups: not just because the returns are high but also because generating returns from capital gains is easier to manage than generating returns from dividends. Growth explains why the most successful startups take VC money even if they don’t need to: it lets them choose their growth rate. And growth explains why successful startups almost invariably get acquisition offers. To acquirers a fast-growing company is not merely valuable but dangerous too. 

I recommend reading Graham’s essay alongside Allison Schrager’s recent article in Quartz on the changing startup ecology.

Reihan Salam — Reihan Salam is executive editor of National Review and a National Review Institute policy fellow.

Most Popular

Culture

Ezra Klein’s Intellectual Demagoguery

Ezra Klein wants you to know that he doesn’t think Sam Harris is a racist. “I’m not here to say you’re racist, I don’t think you are,” Klein explains in a two-hour debate with Harris on the latter’s podcast, Waking Up. “We have not called you one.” No, not at all. Klein is telling the truth ... Read More
Education

The Scholarship/Activism Balance — A Rejoinder

The Martin Center recently published an article by sociology professor Fabio Rojas, in which he argued that professors should maintain the right balance between their teaching and scholarship on the one hand, and activism on the other. In today's article, the Center's Jay Schalin pushes back somewhat. Schalin ... Read More
U.S.

The Book Comey Wanted to Write

Making the click-through worthwhile: the book James Comey had wanted to write, Facebook starts to feel useless to some writers, an infamous D.C. city councilman manages to make everything worse, and Hillary Clinton’s campaign finds its wish granted. What Did James Comey’s First Draft of A Higher ... Read More
Film & TV

Pro-Life Feminist

My paisana at the Human Life Review are hosting an event in NYC on Thursday, May 3, at the Sheen Center (18 Bleeker Street) for the airing of director Jim Hanon’s half-hour documentary, Pro-Life Feminist. After the viewing, he’ll join the trio of castmates -- Destiny Herndon-De La Rosa, Aimee Murphy, and ... Read More
Politics & Policy

Good News for Pompeo

Looks like he's in, as he should be. https://twitter.com/TomCottonAR/status/987050849317867521 But this fight has been a hint of what life will be like for Trump if the Democrats somehow take the Senate -- they'd refuse to confirm anyone for anything. Read More