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Launch Fast, Spend Big: The Evolution of Company Launches
Launching a company has become increasingly expensive due to fierce competition and the need for global expansion. In the past, companies could start in the US and then expand gradually, but now, they must run fast to stay ahead of competitors. This necessitates significant spending, leading to larger funding rounds. To address this, venture firms like Sequoia moved towards growth funding, vertically integrated businesses, and even launched a global growth vehicle to support their portfolio companies. They realized the importance of being tactical with product decisions and strategic in their investments. Additionally, they established a hedge fund to navigate the challenges of scaling revenue and market capitalization at different stages of growth.