The idea is that you don't move beyond the 1st phase until you've thoroughly proved that your business model will scale. At that point, you DO want to hire managers, and grow your team. You've spent a lot of energy up till that point ensuring that your business formula will work, and it makes sense to take advantage of that by growing quickly.
It is different than the stereotypical valley mindset because the dotcom companies scaled before they knew that they had found a real problem, created the right solution, and sorted out a business model that could scale with more manpower behind it.
