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"Most small startups (by which I mean fewer than 20 people) don’t have enough work..."

What? WTH kind of startup is short on stuff to do? If you have 2 general-purpose devs, they're going to be 100% busy. if you have 1 front-end and 1 back-end dev, they're going to be 100% busy. If you add another dev, that person is going to be 100% busy, whether they're front-end or back-end.

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If there are two guys, one guy working on server-side code and another guy working on client-side code, either side could get held up waiting for the other guy to finish his part of the project.

Even if people aren't waiting around for something to be completed by someone else there is an overhead in communication. "Oh, you wanted the LIs to have that class name? Well I've got to go fix my CSS now... gimme a few minutes."

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