After years of prioritizing growth at all costs, many startups are rethinking their strategies and shifting their focus toward efficiency and profitability. A tighter macroeconomic environment, with high interest rates and less available capital, has pushed investors to demand more solid financial results. Instead of chasing aggressive expansion, the new goal is to build sustainable operations. The era of blitzscaling is giving way to a more rational management style, with an emphasis on cash generation. This shift marks a significant change in the mindset that has guided the market for nearly a decade.
This pivot directly affects product decisions. Startups are now prioritizing features that generate revenue quickly or boost customer retention, rather than betting solely on disruptive innovation. Leaner MVPs and shorter validation cycles are back at the core of strategy. There's also a re-evaluation of freemium models and high spending on user acquisition. The focus is clear: deliver value in a more efficient and measurable way.
Marketing is also feeling the impact. Budgets are tighter, and every dollar spent must be justified with hard data. Performance is now more valued than branding, especially in the early stages of the funnel. Campaigns are aimed at direct conversion, and channels with better cost-efficiency — like content marketing and strategic partnerships — are gaining traction. Creativity remains essential, but it now comes with strict metrics attached.
In HR, controlled growth means leaner and more multifunctional teams. Startups are investing in retaining and developing internal talent rather than aggressive hiring. The culture of “scaling the team at all costs” is giving way to a more sustainable model, where every hire is strategic. Benefits that promote productivity, engagement, and autonomy are taking precedence over traditional perks. The result is a more resilient operation, able to withstand lean times without losing its core.
VERVE CAPITAL
