Venture Deal Sizes Will Shrink All Else Equal
One simply does not need as many people to launch a Software company today given how far LLMs have come on the software engineering side.
Far fewer people and lots of tokens are what is required to build a software company.
This may force some VCs up-market. Early-stage venture rounds will be smaller as the cost of Software development races to zero.
Watch how quickly software engineering employment implodes, especially when this next round of models from OpenAI and Anthropic are released here in Q2.
The operating budget question becomes: “How many tokens to budget per software engineer?”