What is Blitzscaling?

And What Startup Founders Need To Know

Photo by Sebastian Voortman from Pexels

At this stage, it is no longer possible to scale up by adding more people, so these startups must find ways to grow quickly through technology.

Reid suggests that Blitzscaling is a state where technology can be used to solve problems at hyper-speed. It is about having access to powerful tools such as machine learning algorithms and cloud computing that enable you to move faster than any human team ever could.

Blitzscaling is also about working smarter so you can achieve more with less.

This means that instead of adding more people or spending your budget on advertising to reach new customers — you look for solutions that will enable you to achieve more with less effort.

What are some examples of Blitzscaling

Some of the best examples of Blitzscaling include Facebook and Uber. These companies are not your traditional startup examples. But they have managed to scale at a much higher rate due to their high capital and technology assets.

What is the future impact of Blitzscaling?

Blitzscaling can be applied by many organizations in various industries that want to move faster than ever before without spending too much money or adding too many resources into operations.

Is Blitzscaling still a valid strategy after WeWork’s failure?

WeWork is a great example of Blitzscaling gone wrong. This company raised over $4.4 billion in funding from investors, and it was also backed by SoftBank, which is one of the biggest investors on the planet.

While WeWork had a good idea to create a coworking space for startups and freelancers — it simply didn’t have the right mix of technology assets and financial resources to execute its plan.

There are many more successful examples of Blitzscaling such as Pinterest, Uber, Slack etc. However, WeWork’s failure was not due to lack of technology or a great idea. It was mainly because they had too much money and not enough focus on their business plan!

You should also put together a strong team that can help you execute your plan before you move into hyper-growth mode.

In summary, you should only Blitzscale if you have a great idea, the right team and the necessary technology assets to support your growth plan. That is when Blitzscaling can help you achieve incredible results with very little capital (relative).

Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and investor.