The Zero to $10M ARR Newsletter

One of my VC-backed friends raised $33M.

His startup got a $195M valuation in 2023.

Every metric looked incredible.

Or so we thought...

Met him for coffee last week. Something was different.

“Want to hear something scary?” he started. His hands were actually shaking slightly as he held his cup.

The facts spilled out:

His startup? Recently valued at $195M. His team? Over 100 people. His metrics? Used to be incredible.

Until they weren’t.

“I haven’t slept in weeks,” he told me, staring into his coffee.

The numbers he shared hit hard:

• $750K monthly burn
• Growth completely flat
• 3 months of runway left
• 100+ families depending on him

Two years ago, he was the poster child of venture success. Today, he’s asking me about running lean teams.

“Your 5-person company makes more profit than my entire operation,” he admitted.

I’ve seen this story before (too many times...):

• Massive funding rounds
• Huge team expansion
• Astronomical burn rates
• Pressure to 10x growth
• The inevitable wall

Reality check: Most venture-backed founders won’t get their fairy tale exit. Most will sell for less than they raised.

Most will wish they’d built differently.

My friend is part of a larger story: A whole generation of startups sitting on huge valuations, burning through millions with no path to profitability

They know the math doesn’t work. They see the end coming. But they can’t stop the machine...

Meanwhile, quietly profitable companies keep building. Small teams. Real revenue. Actual profits. No board meetings about burn rates. No pressure to 10x.

The venture treadmill is a seductive trap:

• The press coverage feels amazing
• The funding announcements get engagement
• The team growth looks impressive
• The office space screams success

But at what cost?

My friend is 37 now. Hasn’t slept properly in months. Carrying the weight of 100 families. Watching his bank balance drain. Knowing his dream might end in a fire sale.

This isn’t a victory lap post. It’s a warning.

Because right now, someone reading this is about to choose: Bootstrap or VC? Sustainable or “hypergrowth”? Real profit or paper valuation?

Choose wisely.

Building a profitable company is harder. It’s slower. It’s less sexy.

But you’ll sleep better.

And in this market? Sleep might be worth more than unicorn status.

Build for freedom, not exits.

Alex Turnbull

Founder and CEO

Groove and Helply

P.S. I'm starting a community + academy for B2B SaaS founders who want to scale to $10m ARR. I'll be building right beside you with my two new startups -- Helply and InstantDocs -- while I teach you everything I know.

If you're interested, join the waitlist here.

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