TLDR Tech / IT
Incubate, Compound, Refinance, Liquidate
Software can be viewed as a portfolio of assets and bets with ongoing carrying costs and value that changes over time. The framework defines four economic postures - incubate, compound, refinance, and liquidate - which products can move through as uncertainty decreases and costs grow. It also highlights the risk of “build trap” dynamics, where teams continue investing in products without creating meaningful value.
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