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"Prematurely scaling and then restarting is hyper painful. The number one reason why startups die is that they run out of money. Cash efficiency is ultimately what matters as you scale a software business...." Chetan Puttagunta, Benchmark Capital. investorfieldguide.com/chetan/
In this podcast Chetan points to blog posts by his partners. One from Sarah Tavel medium.com/@sarahtavel/th… and one from Bill Gurley abovethecrowd.com/2012/09/04/the… On an issue like the importance of organic customer acquisition, it is fun to hear Chetan talk Benchmark's DNA is apparent.
At one point in the podcast Chetan talks about the goal of gross customer additions at $0 CAC (i.e., 100% pure organic acquisition). This represents the ultimate in product/market fit since it is inevitably driven by Andy Rachleff's nirvana of growth via unpaid word-of-mouth.
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