The Growth Illusion
There’s a moment in every founder’s journey, usually between seed and Series A, when growth becomes the obsession:
- “Which channel will get us customers fastest?”
- “Should we launch that new product now?”
- “Is the next round or a big partnership the shortcut?”
These questions matter but focusing only on shiny outcomes misses something essential. Before picking the path, ask: Where is the company in its real journey, and which engine truly fits this stage?
What’s a Growth Engine?
For startups, the engine is the system you choose to drive sustainable growth. It might be:
- Raising capital (Series A, bridge, or VC rounds)
- Launching new products or features
- Entering new markets (geographies or verticals)
- Building strategic partnerships
- Doubling down on efficiency or operational excellence
Here’s the trap: not every engine fits every stage. What looks like momentum can turn into a money pit or worse, collapse your foundation.
Too often, founders ask the wrong question:
- Not “How do we grow?”
- But “What’s the right kind of growth for us right now?”
And more importantly:
- “What will this cost in dollars, time, and team energy?”
- “Is the juice worth the squeeze?”
When founders see competitors sprinting ahead, they may assume slamming the accelerator is always the answer. But more often, the winners are those who questioned their own assumptions. Who are we actually serving… and do we have cold, hard proof they’d miss us if we disappeared tomorrow? What will chasing this shiny new opportunity really cost, not just on a spreadsheet but in late nights and team bandwidth? Are we built for this, or about to rewrite our org chart for the third time this year? And in the crowded market circus, does this move actually make us stand out or just look desperate for attention? These aren’t just strategic musings—they’re survival questions.
The 4Cs. A Practical Lens
When founders pause to ask questions before picking an engine, they move from guesswork to clarity. This is where the 4Cs come in—a practical way to break down the realities of Customer, Cost, Capability, and Competition before taking the next step.
- Customer: Who exactly are you serving, and do you have proof they’re the right ones?
- Cost: What will this path demand in capital, time, and energy?
- Capability: Does your team have the skills and systems to deliver?
- Competition: What are others doing, and how does this choice set you apart?
Let’s take a look at some powerful examples of companies that successfully scaled or stumbled, through the 4Cs lens.
Bolt. The Cost of Scaling Too Fast
Once valued at $11B, Bolt scaled up headcount, partnerships, and promises before its product was market-ready. Integrations lagged, merchants complained, and costs ballooned.
The 4Cs breakdown:
- Customer: Product-market fit was shaky; merchants weren’t truly loyal.
- Cost: Burn rate skyrocketed due to premature hiring and large marketing spend.
- Capability: Internal systems struggled to match the pace of growth.
- Competition: While Bolt chased growth headlines, Stripe and Shopify focused on reliability.
Lesson: Scaling before validating customer loyalty and unit economics only magnifies foundational problems.
Notion. Growth Through Patience and Community
By contrast, Notion capped growth after initial traction. They slowly invited new users, refined workflows, and built a strong user community before scaling globally.
The 4Cs breakdown:
- Customer: Clear product-market fit with creators, startups, and teams.
- Cost: Growth driven by virality and a passionate community, not heavy spending.
- Capability: The team maintained a tight focus on usability and product excellence.
- Competition: Differentiation came from flexibility, standing out against more rigid competitors.
Lesson: Sometimes the smartest growth engine is patience, depth before breadth.
Quibi. The Product Pivot That Flopped
Backed by nearly $2B, Quibi launched in 2020 betting on short-form, Hollywood-quality shows for mobile. But when adoption lagged, they scrambled—pivoting to distribution deals, new marketing, even user-generated features. None worked.
The 4Cs breakdown:
- Customer: Misread the audience, users didn’t want “TV for your phone” with YouTube, TikTok, and Netflix already dominating.
- Cost: Unsustainable burn on premium content.
- Capability: Built for Hollywood production, not agile consumer iteration.
- Competition: Entrenched players owned the market.
Lesson: Switching product strategies midstream doesn’t work without proof of customer demand. No pivot saves you without a solid foundation.
Carta. A Product Pivot That Paid Off
Carta began as a cap table tool. When growth plateaued, they expanded into valuations, fund admin, and liquidity. Risky—but it worked, because their foundation was strong.
The 4Cs breakdown:
- Customer: Startups already trusted them with critical data.
- Cost: Expansion required capital and talent but stayed adjacent.
- Capability: Leveraged a robust, scalable platform to handle complex equity management as it expanded.
- Competition: Maintained an early lead even as new equity management startups entered the market.
Lesson: Product expansion succeeds when it builds on a validated foundation and addresses real customer needs.
WeWork. The Cost of Ignoring Capacity
WeWork pursued aggressive expansion into side ventures and global markets, leading to soaring costs and mounting complexity. Ultimately, the company filed for bankruptcy in late 2024.
The 4Cs breakdown:
- Customer: Demand existed, but expansion overextended beyond core users.
- Cost: Unsustainable burn on real estate bets.
- Capability: Systems and leadership couldn’t deliver at scale.
- Competition: Traditional landlords and new coworking entrants offered stability while WeWork chased hype.
Lesson: Growth without aligned systems and capacity isn’t momentum—it’s overload.
After raising significant capital, Airtable resisted chasing every use case. Instead, they slowed hiring, trimmed distractions, and doubled down on enterprise adoption.
Airtable. Discipline in Expansion
After raising significant capital, Airtable resisted the urge to pursue every opportunity. Instead, the company focused resources, slowed hiring, and prioritized enterprise adoption resulting in sustainable expansion.
The 4Cs breakdown:
- Customer: Prioritized enterprise clients with highest value.
- Cost: Reduced burn by focusing resources.
- Capability: Matched team bandwidth to execution capacity.
- Competition: Differentiated through enterprise-grade reliability.
Lesson: Growth without aligned systems and capacity isn’t momentum—it’s overload.
The 4Cs aren’t optional—they’re essential for navigating growth without losing focus or burning out resources. The 4Cs framework moves founders from gut instincts to data-driven decisions, clarifying when and how to accelerate. Ultimately, founders who succeed aren’t chasing every new trend—they’re honest about where they stand, focus on one growth engine at a time, and prioritize strong fundamentals over speed. Build your foundation first, align your team and resources, and let substance drive your strategy. That’s how lasting companies outpace the rest.
The Bottom Line: Substance Over Shine.