Blitzscaling
Definition
Blitzscaling: Blitzscaling is a strategy of prioritizing speed over efficiency in scaling a company, accepting significant losses to capture market opportunity before competitors. Coined by Reid Hoffman, it applies when first-mover advantage is critical and capital is available. Most startups should not blitzscale—it's high-risk and capital-intensive.
Example Usage
“We blitzscaled into 10 cities in 6 months, burning $5M. The market-share gains were worth it—we became the default choice.”
Common Misconceptions
Related Terms
First-Mover Advantage
First-mover advantage is the competitive benefit gained by being first to enter a market. Advantages include brand recognition, customer lock-in, and...
Network Effects
Network effects occur when a product becomes more valuable as more people use it. Direct network effects mean users benefit from other users (social n...
Burn Rate
Burn rate is the speed at which a company spends its cash reserves before generating positive cash flow. Gross burn is total monthly expenses, while n...
Runway
Runway is the amount of time a startup can continue operating before running out of money, assuming current burn rate remains constant. It's calculate...
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