Do the best companies show strong momentum from the start, or do many great companies pass through an early trough of disillusionment before breaking out?

Sarah Guo · Apr 28, 2023

Figma took three or four years to show strong signal

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Ed Sim · Jan 10, 2024

None of his best winners were easy or consensus deals — all required multiple bridge rounds and a come-to-Jesus moment before the market caught up

Snyk took three fundings before its A, BigID three, SecurityScorecard needed a bridge before Sequoia came in and now does over $100M ARR, and Kustomer needed a bridge between A and B; the great founders 'aren't until they are'

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Harry Stebbings · Apr 3, 2024

Great companies commonly go through a trough of disillusionment where they are not hot in early rounds and take a long time to show results

Figma, HubSpot and Veeva were all unloved in early rounds and took a long time before anything came out, yet became enormous businesses

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Trae Stephens · Apr 3, 2024

The best companies in a portfolio were the best companies at every stage; companies rarely struggle for a long time and then suddenly hit an unlock

Momentum, which is visible and visceral, carries the winners through — contrary to the deep tech belief that holding out long enough until tech milestones accumulate will eventually create movement

38:57 Best companies show momentum from the start not late unlocks

Trae Stephens · Apr 3, 2024

Companies that struggle early and later break out are the exception, not the rule; momentum-driven winners are far more common

The counterexamples offered are cherry-picked specific cases

40:17 Early struggle then breakout is the rare exception not the rule