Tiny startups
23 Jun 2024
With the advancement of dev tooling and LLMs, thereās a growing consensus that weāll witness a proliferation of even more tiny companies. These micro-teams will be capable of building products and services that once required thousands of employees to develop and maintain.
As the barriers to entry plummet, several second-order effects may emerge:
- Reduced reliance on venture capital
- Heightened importance of non-technical moats: Network effects and other intangible assets will become increasingly crucial for competitive advantage.
- Likely a pull forward of monetary payoff: more profit distribution models instead of stock options.
- Increased vertical integration: Companies focus on dominating specific niches or integrating multiple parts of their value chain.
- Intensified competition for attention: As more startups emerge, standing out becomes increasingly challenging, making effective distribution and marketing even more critical.
- Decentralisation of tech hubs.