Evergreen Companies: Book Review of Dave Whorton’s Another Way

Another Way: Building Companies That Last…and Last…and Last (Harvard Business Review Press, 2025) is a book that challenges Silicon Valley’s obsession with blitzscaling and quick exits.

Author Dave Whorton – a former venture capitalist turned entrepreneur – recounts his journey from the inner sanctum of Silicon Valley to discovering an alternative approach to building great companies.

Co-authored with Bo Burlingham (known for Small Giants), the book’s thesis is simple yet profound: there is “another way” to build highly valuable businesses that doesn’t involve the VC-fueled “get big fast” model.

Instead, Whorton advocates the Evergreen model – a long-term, purpose-driven approach focused on steady growth, profitability, and people – in other words, building companies that can endure for generations.

In this review, we’ll break down the key themes and lessons from Another Way, comparing the conventional venture-backed startup path with the Evergreen alternative, and analyze how these principles can be applied by founders in today’s economic and cultural climate.

Rethinking Silicon Valley’s “Get Big Fast” Model

One of the central themes of Another Way is a critique of Silicon Valley’s dominant growth-at-all-costs mindset. In the late 1990s, as Whorton rose through the ranks at legendary VC firm Kleiner Perkins, he witnessed the industry shift from a disciplined, risk-managed playbook to an aggressive “get-big-fast” strategy.

The mantra became raise capital, scale rapidly, worry about profits later. As one venture capitalist quipped, “Companies today are designed to raise cash, not generate cash.”

This “blitzscaling” approach – popularized by the dot-com boom and subsequent waves of cheap capital – often demands that startups burn through investor money to grab market share, with the hope of either a massive IPO or an acquisition as the payoff.

Whorton explains how this model, lionized by media and investors, defines success narrowly in terms of unicorn valuations and explosive growth.

The book recounts how the “get big fast” philosophy became the de facto path for entrepreneurs, even though it’s actually suitable for only a small subset of companies (typically those in winner-takes-all markets or with strong network effects).

Many founders feel pressured to pursue hypergrowth and VC funding even when their business fundamentals or personal goals don’t align with that model. Whorton shares candid anecdotes – including his own experience co-founding drugstore.com in 1998 at the height of the dot-com frenzy – to illustrate the pitfalls.

Backed by top-tier investors and propelled to a flashy IPO, Drugstore.com peaked at a stock price of $67.50 in 1999, only to crash in the dot-com bust and never fully recover. It was acquired by Walgreens in 2011 and eventually shut down, proving that blitzscaled success can be fleeting. High-profile startup implosions like WeWork have similarly exposed how chasing growth at any cost can lead to operational chaos and broken business models.

Whorton doesn’t claim the venture-backed approach is always wrong – indeed, he acknowledges it has built some world-changing companies. However, he provides much-needed context for when it makes sense. The traditional VC playbook expects an exit (sale or IPO) in ~5–10 years, which means investors push for breakneck growth and “moonshot” outcomes.

This can be appropriate for businesses in winner-take-all scenarios (e.g. global social networks or cutting-edge biotechs) where speed is essential and the upside is enormous. But the book argues that outside of those cases, applying Silicon Valley’s unicorn-or-bust model broadly is “foolish” – it forces many entrepreneurs into a one-size-fits-all game that doesn’t suit their industry or long-term ambitions.

In Whorton’s words, the get-big-fast model has become a “very narrow definition of business success” that we must challenge

The Evergreen Alternative: Building Companies That Endure

If the VC-backed path is about sprinting toward a liquidity event, the Evergreen model is about pacing yourself for a marathon.

Whorton’s “another way” is essentially a rediscovery of how many businesses used to be built before venture capital dominated the narrative.

These Evergreen companies focus on long-term sustainability over quick scale. They are often privately owned, reinvest profits to fund growth, and prioritize purpose and people alongside profits.

As Whorton vividly puts it, his journey led him to see “a better way to build businesses, a better way to do capitalism.”

Evergreen businesses exist across industries and sizes – from small family firms to large market leaders – and many have been operating successfully for decades. (Whorton notes that one of the companies he discovered on his journey is nearly 300 years old, with a ninth-generation CEO).

These companies tend to weather downturns better, foster deeply loyal workforces, support their communities, and still “make good money.”

In fact, some of the original Silicon Valley icons followed a similar ethos. Hewlett-Packard in its early heyday is one example Whorton cites. Founded in a garage in 1938 with just $538 and no venture capital (because none existed then), HP steadily grew into a multibillion-dollar tech empire while pioneering a people-centered culture known as “The HP Way”.

Bill Hewlett and David Packard built a company to last, not a startup to flip – they “had no support [and] no venture capitalists” in the beginning, yet created an organization famed for its innovation, profit-sharing, and employee loyalty.

HP’s success over many decades underscores the viability of a long-term approach.

Whorton coined the term “Evergreen” to capture the key characteristics he observed in these enduring companies. In Another Way, he introduces the Evergreen 7Ps framework, which distills the shared principles of businesses built to last. The 7Ps are seven core values or attributes that Evergreen companies embody:

1. Purpose – A compelling reason for the business to exist beyond just making money (a guiding North Star mission)
2. Perseverance – The resilience and grit to overcome obstacles and keep pursuing that purpose over the long haul
3. People First – A people-centric culture that puts employees’ welfare and development at the forefront, on the belief that if you take care of your people, they will take care of customers, suppliers, and community (This principle echoes the approach of many “Small Giants” companies Burlingham profiled – e.g. businesses that “care for each other, their community, their suppliers, and profitability, in that order.”)
4. Private – Closely-held ownership that allows a longer-term view and strategic flexibility. Evergreen companies eschew the pressure of public markets or quick exits, staying private to maintain control and focus on their mission.
5. Profit – A healthy profit engine that is viewed as the means, not the end. Profitability is essential for independence and resilience (it’s the source of self-funding and “oxygen” for growth), but Evergreen leaders do not mistake profit for their purpose.
6. Paced Growth – Steady, consistent growth year after year rather than hypergrowth spurts. Evergreen firms have the discipline to grow organically and sustainably, balancing short-term and long-term needs. They aim for progress “year after year” instead of chasing explosive expansion that might flame out.
7. Pragmatic Innovation – A commitment to continuous improvement and innovation within sensible constraints. Evergreen companies take calculated risks and innovate creatively, but they do so with an eye on ROI and survival – no bet-the-farm gambles.

These 7Ps serve as guiding stars for founders who want to build what Whorton calls “enduring, market-leading businesses that make a dent in the universe.”

Rather than measuring success solely by how fast a company scales or how high its valuation soars, the Evergreen model measures success by robust longevity – profitable growth sustained over decades, happy employees and customers, and positive community impact.

It’s a more holistic and stakeholder-oriented view of business. (Notably, this ethos aligns with broader trends in today’s culture, from the rise of B-Corps to the Business Roundtable’s recent emphasis on serving employees and communities, not just shareholders.)

Bo Burlingham’s earlier work Small Giants presaged many of these ideas, highlighting companies that “choose to be great instead of big,” valuing mission and community over endless expansion.

Another Way builds on that foundation with Whorton’s personal story and framework, showing that such principles are not only admirable but eminently practical in building a lasting business.

Throughout the book, Whorton illustrates the 7Ps in action via case studies and founder stories. He shares examples of Evergreen entrepreneurs who resisted the pressure to sell out or scale at all costs, and instead built businesses on their own terms.

Some are well-known, like HP’s legendary rise without VC aid, and others are more unexpected – including firms over a century old and even a 300-year-old enterprise still thriving by sticking to its core purpose.

These stories range from tech companies to manufacturing and service businesses, underscoring that Evergreen principles apply in almost any sector.

Evergreen vs. VC-Backed: Choosing the Right Growth Path

A core question for any founder reading Another Way will be: Which model is right for my business? The book provides a nuanced comparison between the conventional VC-backed startup model and the Evergreen company model.

Each has its place, and Whorton is careful to outline when each is appropriate – a refreshing balance absent from many one-size-fits-all business books. Below is a high-level comparison of the two paradigms:

(Table: Venture Capital-backed model vs. Evergreen model – key differences in goals, funding, growth, and culture.)

As the table suggests, the VC model and the Evergreen model are almost mirror opposites in many ways. Venture-backed startups are like rockets – they take off fast, fueled by outside capital, but they either reach the stratosphere or burn up trying.

Evergreen companies are more like oak trees – they grow slowly from sturdy roots, compounding over time, and can weather storms due to their solid fundamentals. Neither approach is inherently “better” universally; it depends on the context and the founder’s intent.

When is the VC-backed model appropriate? Another Way acknowledges that for certain opportunities, taking the get-big-fast route is rational. If you’re in a market that rewards land-grab tactics (for example, a new technology platform where network effects mean the biggest player reaps most of the rewards), then raising significant venture capital and scaling rapidly might be necessary.

Likewise, if a company needs substantial upfront R&D investment (say, biotech or hardware) or is in a race against competitors where speed is the deciding factor, the hypergrowth strategy fits. And, frankly, some entrepreneurs are comfortable with the “high risk, high reward” trade-off – they want the chance to build a billion-dollar company in 5 years and are willing to risk flaming out.

For those founders, venture funding provides not just money but a stamp of credibility and access to networks that can accelerate growth. The Silicon Valley model, for all its flaws, has produced Google, Facebook, and countless innovations; it’s optimized for cases where scale now is more valuable than slow-and-steady value later.

When is the Evergreen model a better choice? Whorton argues that in the vast majority of businesses, an Evergreen approach will lead to better outcomes for the founders, employees, and even society.

Markets that are large but not winner-take-all, niches where customer loyalty and quality matter more than speed, or any business that can reach profitability early – these are prime candidates for Evergreen.

If the founder’s goal is to build a company they can run for life (perhaps even pass on to the next generation), or to maintain creative and moral control of the enterprise, then avoiding venture capital entanglements is wise.

Evergreen is also appropriate when the economics favor patience: rather than dumping money into subsidizing growth (e.g. paying customers to acquire them), the company can grow through reinvesting its own earnings. Whorton notes that prior to the VC era, “startups [typically] focused on getting to profitability early and growing from there” – following Clayton Christensen’s principle of “impatience for profits, patience for growth.”

That approach leads to more robust businesses. Additionally, if a company’s competitive advantage comes from culture, customer service, or intellectual property that doesn’t scale linearly with dollars spent, it likely gains little from hypergrowth and more from refinement over time. For such businesses, bringing in venture investors (who will eventually push for an exit) can actually be counterproductive.

As Bo Burlingham observed, many great companies stay private on purpose: they “carefully guard their equity and focus on sustainable growth” rather than chasing external capital that could force them off mission.

In short, Evergreen is ideal when the aim is long-term value over short-term vanity metrics. Even financially, the book points out, a smaller company that is highly profitable can often be more rewarding to its owners than a larger one that is barely profitable.

Applying Evergreen Principles in a VC-Dominated World

One of the most valuable aspects of Another Way is its practical resonance for founders operating in today’s VC-dominated startup ecosystem.

Not every entrepreneur will reject venture capital outright – nor should they – but many of the Evergreen principles can be applied even within a VC-funded context to build a healthier business. Moreover, in the current economic climate, the pendulum is already swinging away from the grow-at-all-costs mentality toward a more balanced approach.

After the frothy “unicorn” boom of the late 2010s, recent years have brought a dose of reality. Rising interest rates and tighter capital markets in 2022–2024 forced startups and investors alike to refocus on fundamentals.

As one industry report noted in 2023, “There’s less emphasis on explosive growth at all costs and a renewed focus on fundamentals like revenue and profitability.” Venture capitalists themselves have been urging portfolio companies to cut burn rates and show a path to profitability, a far cry from the blitzscaling mantras of a few years prior. In other words, the macro environment is organically making startups behave a bit more Evergreen.

Founders can seize this moment to proactively adopt Evergreen principles in their strategy. Here are some practical ways to do so, as gleaned from the book’s lessons and related insights:

• Revisit Your Purpose: Clarify the core mission of your company beyond just “grow and get acquired.”
  
  A strong Purpose will act as a compass for decision-making. Whorton found that Evergreen leaders put purpose first – whether it’s solving a specific problem, serving a community, or advancing a craft – and this helped them resist destructive shortcuts.
  
  Ask yourself: If we never raised another dollar, would our purpose still drive us forward? A clear purpose can inspire your team and attract customers in a way that pure growth goals cannot.
  
• Focus on Profitability and Unit Economics Early: Even if you do take some venture funding, maintain “impatience for profit”. Build a business model that actually makes money on each customer or unit sold, and do it sooner rather than later. This discipline will force you to find a sustainable footing.
  
  For example, instead of subsidizing growth with deep discounts or free services hoping to “lock in” users, find a price/value equation that customers are willing to pay for now. Not only does early profitability secure your independence, it also makes your startup more attractive to the right kind of investors (those who value viability over hype).
  
  As Whorton notes, prior generations of entrepreneurs survived by being profitable – that wisdom is timeless. In practical terms, this might mean scaling a bit more slowly, but with a solid foundation of gross margins and positive cash flow in sight.
  
• Guard Your Equity (Ownership): Equity is precious. Every time you raise money, you dilute not just your cap table but potentially your freedom to operate. Another Way and Bo Burlingham’s work both emphasize the importance of keeping ownership in committed hands.
  
  This doesn’t mean “never raise money,” but raise only what you truly need, and seek out aligned capital. There are increasing options for founders today – from revenue-based financing to family offices and “patient investors” – who may be more Evergreen-friendly than a traditional VC fund with a 5-year clock.
  
  Many entrepreneurs have also used creative structures (employee ownership plans, customer funding, strategic partnerships) to fuel growth without ceding control.
  
  The key is to be intentional about if and when you bring in outside investors, and choose those who respect your long-term vision. As Burlingham observed, saying “no” to certain growth opportunities (and the capital that pushes them) can, counterintuitively, make you more successful in the long run.
  
• People First, Culture Always: Another Way is filled with reminders that treating people well is not just a nice moral choice, but a smart business strategy for longevity.
  
  Evergreen companies tend to have lower employee turnover, higher engagement, and strong institutional knowledge – all competitive advantages that compound. As a founder, you can apply this by building a culture where employees feel truly valued and part of the journey.
  
  This might include sharing profits (e.g. bonuses, profit-sharing programs) or even sharing equity in meaningful ways, as many Evergreen companies do via ESOPs or stock bonuses.
  
  It also means making decisions with an eye to their impact on your team’s morale and trust. One Small Giants entrepreneur said, “Today I never make a decision that will jeopardize anybody’s job.”
  
  That level of care for employees engenders loyalty that money can’t buy. In practice, putting people first could mean pausing growth to avoid overstretching your team, or turning down a lucrative deal that would damage your company culture or work-life balance.
  
  These trade-offs are easier to make if you’re not under constant outside pressure to maximize short-term results. The payoff is a committed team that will go the extra mile and stick around for the company’s journey, a hallmark of businesses that last.
  
• Adopt Paced Growth as a Strategy: Resist the temptation to chase every shiny opportunity at once. Instead, plan for measured, sustainable growth milestones. This could involve setting modest, achievable annual growth targets (e.g. 10–20% year-over-year, depending on your industry) rather than expecting to triple your metrics annually.
  
  It also means scaling your operations in line with growth – maintaining quality and customer experience even as you expand. A practical tip from Evergreen CEOs is to regularly ask, “If we grow X% this year, can our systems, people, and culture absorb it gracefully?”
  
  If not, slow down and strengthen the foundation. Remember, a company compounding at 15% annually will more than double in five years – healthy growth by any traditional standard.
  
  Steady expansion also leaves room for pragmatic innovation: you can pilot new products or process improvements on a small scale, learn, and iterate without betting the company.
  
  This incremental approach to innovation (versus the “pivot or perish” mentality) can yield breakthroughs over time, as evidenced by Evergreen firms that continually reinvent themselves in small ways to stay competitive.
  
• Stay True to Your Values (Especially When Pressured): One of the hardest tests for any entrepreneur is when high stakes – big money or big deals – push you to compromise on your principles.
  
  Another Way highlights that Evergreen leaders hold fast to their values when making decisions, and this consistency builds trust with stakeholders. For instance, if one of your core values is customer service excellence, the Evergreen approach would caution against any growth initiative that undermines service quality (even if it boosts short-term numbers).
  
  Or if you pride yourself on ethical sourcing, you wouldn’t suddenly cut costs with a dubious supplier to please investors. Sticking to values might seem like a luxury in a cutthroat market, but it’s exactly what differentiates lasting companies.
  
  As a modern example, think of Patagonia – Yvon Chouinard famously prioritized environmental and employee well-being over maximization of profit, and in doing so built a brand with a fiercely loyal customer base and decades-long success.
  
  The Evergreen mindset would applaud such choices as rational in the long run, even if they perplex traditional analysts in the short run. Founders can take heart that, increasingly, customers and talent are drawn to companies with strong values, making it even more commercially sensible to stand by your principles.

In essence, applying Evergreen principles today means running your startup like a real business, not just a speculative venture.

Notably, even many Silicon Valley darlings eventually turn to these principles once the hypergrowth phase is over – for example, the moment a startup IPOs, the public markets reward profitability and steady growth, not endless user growth at a loss.

Whorton’s point is: why not bake these sound principles in from the start? By doing so, you not only increase your chances of survival if the funding music stops, but you also set yourself up to control your destiny. You can always choose to raise capital or accelerate if conditions allow – being Evergreen doesn’t mean being slow, it means being in control of your speed.

Finally, founders should recognize that the startup landscape is broadening. There’s a growing community and support network for “Evergreen entrepreneurs”.

Organizations like Tugboat Institute (founded by Whorton) bring together owners of private, long-term companies to share best practices. Media outlets and books (like this one) are giving more visibility to alternative success stories.

Even investors are adapting – some VC firms now talk about “patient capital” and new fund models to support longer-term growth. Culturally, there is rising respect for the craft of building a solid business, not just flipping a startup. In this climate, choosing the Evergreen path is no longer seen as a consolation prize; for many, it’s becoming the aspirational route.

As Whorton notes, these businesses represent “capitalism at its best”, creating widespread value and lasting impact.