Efficient R&D spending is crucial for startups to innovate, grow, and stay competitive. But how much should you spend on experimentation vs core improvements? @a16z Growth Fund leader David George gave us his framework on the latest ep: The 70-20-10 split.
70% of resources go toward core projects (incremental improvements), 20% to adjacent innovations (new opportunities related to the core), and 10% to transformational or experimental projects (high-risk, breakthrough innovations).
This creates a balance: the company still grows and finds future growth areas without jeopardizing the current success of the business.
More practical advice for entrepreneurs and builders on the latest episode:
https://www.youtube.com/watch?v=eA9XDRz51Zg&t=2s
