Employee Turnover in Hypergrowth SaaS Companies: Why It's a Normal Signal, Not a Red Flag

Jason Lemkin argues that rising employee turnover in hypergrowth SaaS companies post-$20M funding is a normal part of scaling and should not alarm investors or board members. As companies grow rapidly and transition through different phases, employees naturally leave for new opportunities, management roles, or to start their own ventures. Rather than indicating company problems, turnover is often simply a reflection of organizational evolution.