Why Culture Matters So Much for Start-Ups

June 28th, 2013 / No Comments »

By Jessica Stillman

Are start-ups getting carried away with crazy perks? Maybe not, responds one VC, who offers a nuts and bolts rationale for this obsession with morale.

The internet is full of tales of startups going to extreme lengths to get company culture right and keep morale high. From paying employees to vacation to moving the company to Morocco, we’re not talking about simple office foosball tables here. Have you ever stopped and wondered why?

Working from sunny locales and eating fab food on the company’s dime certainly makes for happier workers (and in the latter case longer hours at the office), but start-ups are bound by the same fundamental rules of economics as larger firms (eventually anyway) and it’s hard to understand sometimes how the boost in productivity from these extreme perks could possibly make financial sense for young firms. Is this simply keeping up with the Joneses Silicon Valley edition?……