What happens when you over-index on momentum early

Months into starting my career in venture, I saw a high-performing company implode. This company was well beyond the typical “implosion” stage (aka pre-seed). Instead, it had raised an early growth round and had tens of millions in revenue. Performance didn’t wreck the company. Instead, a black-swan event did.

We saw examples of this type of implosion when COVID hit, and again when it abated.

Momentum builds quickly but it can evaporate so as well.