Growth vs Profitability dilemma

What do Amazon, Uber, Tesla, and Spotify have in common? They’re all high-tech companies that stayed unprofitable for decades, prioritizing rapid growth over immediate profit.

But times are changing. A recent Y-Combinator podcast indirectly highlights this shift.

Those speakers are deeply immersed in the startup ecosystem.
And two points stood out to me:

  1. Growth Accelaration
    At 00:02:00, they discuss how the average growth rate for startups in their portfolio has dramatically accelerated since summer 2024. In the past, only the best-performing startups, like Airbnb, achieved a 10% weekly growth rate. Today, that rate is the market average. Some companies are even projecting $10–20 million in revenue in their very first operational year.
  1. Startup lifecycle
    At 00:12:02, they question whether the startups being built today will even survive in a world where AGI becomes a reality. Their honest answer? They’re not sure.

Key takeaway: Go big now, stay lean, leverage artificial intelligence, and maximize profits ASAP. Don’t expect your company to last 10 years, even if you’re on the cutting edge of technology—your advantage will fade quickly.