Ectothermy
Ectotherm companies operate like lifestyle businesses - low burn rate, dependent on market conditions, limited growth windows but sustainable indefinitely.
Ectotherms (cold-blooded animals) regulate body temperature through external sources and behavioral thermoregulation. The desert iguana maintains 100°F body temperature by basking on dark rocks (morning), seeking shade (midday), shuttling between sun and shade (afternoon), and burrowing underground (night). Energy cost: 2% of daily caloric intake. A 100-gram iguana needs 20 calories/day vs. 200 for a same-sized mouse. Trade-off: activity limited to 6 hours/day when temperature is optimal.
Business Application of Ectothermy
Ectotherm companies operate like lifestyle businesses - low burn rate, dependent on market conditions, limited growth windows but sustainable indefinitely. Mailchimp (bootstrapped, profitable from day one, sold for $12B after 20 years) exemplifies this strategy.