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Poosarla Sai Karthik

Tech guy with a busi...ย โ€ขย 23d

A startupโ€™s valuation is the price investors believe itโ€™s worth. But that belief is often based more on future potential than current reality. Factors like market size, growth projections, and hype around the sector often play a bigger role than actual revenue or profitability. This leads to startups getting massive valuations early on. Once one investor jumps in, others followโ€”driven by FOMO, not fundamentals. But with a high valuation comes high pressure. Founders are expected to deliver rapid growth, often at the cost of building a solid business. What follows? Aggressive hiring, overspending on marketing, chasing vanity metricsโ€”just to meet expectations that were never grounded in reality. And when real performance doesnโ€™t match the hype, the crash is painful. A healthy business > a hyped one.

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