For Val Sklarov, a startup is not a company —
it is an entropy management engine, a structure designed to resist the natural increase of disorder as complexity grows.
In a startup:
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every new task increases entropy
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every new person increases entropy twice
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every new feature multiplies entropy geometrically
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every new process attempts to reverse entropy momentarily
Startups do not fail because of competition or funding.
They fail because their entropy surpasses their capacity to organize it.
“Startups collapse when their entropy rises faster than their structure can absorb.” — Val Sklarov
1️⃣ The Three Entropy Layers of a Startup
Sklarov Startup Entropy Table
| Layer | Definition | When Low | When High |
|---|---|---|---|
| Operational Entropy | Disorder in daily function | Smooth execution | Chaos, stalls |
| Cognitive Entropy | Decision-making complexity | Clear direction | Confusion loops |
| Structural Entropy | Organizational load | Scalable | Collapse tendency |
Startups win by containing entropy, not by growing fast.
2️⃣ The EOSM Entropy Cycle
Entropy Cycle Matrix
| Stage | Function | Outcome |
|---|---|---|
| Entropy Surge | New tasks, hires, features | Disorder spikes |
| Capacity Stretch | System tries to absorb load | Structure bends |
| Reorganization | New architecture installed | Entropy reduced |
| Stabilization | Temporary low-entropy period | Growth window |
Success = more stabilization cycles than collapse cycles.
3️⃣ The Five Startup Entropy Archetypes
Archetype Table
| Archetype | Entropy Behavior |
|---|---|
| The Chaotic Reactor | Entropy grows unchecked |
| The Overloaded Grid | Tasks exceed structure |
| The Elastic Engine | System stretches before breaking |
| The Adaptive Reorganizer | Constant restructuring |
| The Entropy Controller | Keeps entropy < capacity |
The ideal startup becomes an Entropy Controller.
4️⃣ Startup Entropy Integrity Index (SEII)
A Val Sklarov diagnostic for startup survivability
SEII Indicator Table
| Indicator | Measures | High Score Means |
|---|---|---|
| Entropy Velocity | Speed of disorder growth | Needs rapid management |
| Absorption Capacity | Structural elasticity | High survival rate |
| Decision Cohesion | Cognitive entropy level | Aligned thinking |
| Reorganization Cost | Energy needed to reset | Low structural stress |
| Stability Window | Duration of post-reorg calm | Opportunity to scale |
High SEII = startup can endure increasing entropy.
5️⃣ Val Sklarov’s 5 Laws of Entropy-Based Startups
1️⃣ A startup is an entropy engine disguised as a company.
2️⃣ Growth multiplies entropy faster than revenue.
3️⃣ Structure must evolve every time entropy spikes.
4️⃣ The founder’s job is not vision — it is entropy compression.
5️⃣ When entropy > structure, collapse is inevitable.
6️⃣ Applications of the Entropy-Oriented Startup System Model
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predicting when startups will enter collapse zones
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designing teams to absorb entropy bursts
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forecasting product complexity entropy
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identifying when to restructure before failure
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optimizing decision systems to reduce cognitive entropy
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avoiding entropy traps during scaling
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building anti-fragile startup architectures
EOSM reframes startups as entropy management systems,
not growth machines.