The Most Crucial Venture Metric: Speed

Speed is the Oxygen of Startups

For every successful venture I’ve helped launch, speed has been a defining factor in survival and growth. Speed isn’t a luxury for startups—it’s the oxygen your venture breathes and the fuel that powers your rocket. In a world where markets shift overnight and competitors are everywhere, moving fast isn’t just an advantage—it’s the difference between success and irrelevance.

Yet, remarkably, speed is rarely discussed as a core metric.

The Power of Speed in a Rapidly Growing Market

We all have learned to build ventures that solve an unmet need—one that is screaming to be solved in a large, rapidly growing market. But once the product is built, speed becomes our crucial advantage. If the market is growing fast, our venture needs to grow faster.

One painful lesson, for example, came from a venture I helped found: Tempo AI. The vision of Tempo was to be an artificial intelligence-based calendar application that would assist the user in their daily life. Tempo would link to both the user’s calendar and their email to provide content that would be helpful to the user. At launch, the demand for our application was so great that it exceeded our ability to manage it. Instead of scaling quickly, we created a reservation list—an unintended bottleneck that slowed momentum and damaged our reputation.

Being First Mover Means Setting the Pace

Founders often talk about being first-movers. There is definitely great value in it. And, of course, once you take the lead, you are revealing your product or service to the world. If you are performing well, competitors will come quickly. First-mover advantage isn’t just about launching first—it’s about staying ahead. As an example, when we launched Siri, we didn’t just introduce a virtual personal assistant; we defined the category, set the narrative, and captured the early adopters.

But we knew that Google and others would respond—and fast. We estimated a six-month lead time before competitors entered the market. That meant we had to race to extend our advantage before they caught up. The clock was always ticking. When they did catch up, Siri was already hugely successful.

Speed is a Founder’s Mindset

Startups don’t just need speed in execution; they need speed in decision-making. I recall a famous VC pressing a team on how often they could iterate and improve their product.

- Their first answer? “Once a month.”

- The VC challenged them: “What about once a week?”

- Then: “What about once a day?”

- Finally: “What about once a second?”

That moment flipped a switch for the team. They realized that speed isn’t just about how often you ship—it’s about how fast you think, adapt, and improve.

Speed attracts everyone. And the lack of speed creates inevitable failure.

- Customers bet on companies that move fast.

- Investors back teams that seem five steps ahead.

- Talent flocks to startups that are going places—fast.

I once watched Vinod Khosla ask a CEO a simple question about his venture’s technology. The CEO promised to follow up. Three days later, the CEO sent his answer.

Vinod’s response?

“You could have answered this in minutes or hours, not days. I’m no longer interested.”

That CEO lost his shot at funding. Speed isn’t just a culture—it’s a test, and VCs are always watching.

Timing is Everything

When Generative AI was first introduced, it was clear it would revolutionize industries. Startups that seized the moment attracted massive investment.

Now? The “Oh my god, I can’t believe that’s possible” reaction is gone. It is much harder for startups taking advantage of Generative AI to gain investment. This kind of fundamental breakthrough has happened many times in the past, such as the development of the internet, the emergence of the smartphone, the advancement of AI, and more. For example, great companies such as Uber and Airbnb thrived because they launched at the right moment when mobile technology and consumer behavior aligned.

Speed Kills the Competition

Founders often worry that major corporations will outcompete them. But they forget that big companies move slowly—burdened by bureaucracy, approval chains, and risk aversion. They are often referred to as “dinosaurs.” Speed is a startup’s secret weapon. Startups can move so fast that by the time the dinosaurs notice you, you’re untouchable. I often think of the “Lilly Pond” analogy. Think of a startup as a single lily in a large pond. No one notices it. But as it grows and reproduces rapidly, it doubles in number every few days. Soon, before anyone realizes it, the whole pond is covered with lilies. Your startup is dominating the pond.

Speed is a Culture, Not a Feature

Speed isn’t just about how quickly you launch—it’s about how fast you:

- Make decisions.

- Kill bad ideas.

- Shift gears when needed.

If your meetings feel like therapy sessions or bureaucracy slows execution, you’re already losing.

Before I even consider working with a company, I have a “secret” agenda. How fast do they move when we discuss the opportunity to work together? How long does it take to make a decision? How tied up are the management in their issues? If the company is slow to plan to work with me, they’ll also likely be slow when we work together.

Slow Kills Morale

Nothing drains a team faster than stagnation. People join startups to build, ship, and win—not to drown in endless strategy discussions. Speed keeps your team sharp, energized, and focused on impact.

And warning: If your best people don’t feel the momentum, they’ll leave for someone who actually moves.

Final Thoughts

For founders and startups, speed isn’t an option—it’s a necessity. There might easily be a hundred different teams thinking about products or services like yours. The difference between you and them will be much more than the quality of your idea. It will be the quality of your team and the quality and speed of your execution. Speed isn’t just about moving fast—it’s about learning fast, adapting fast, and staying ahead. It’s the ultimate advantage.

Your Venture Coach,

Norman