It might not be representative, but the people I’ve known that wanted to start tech businesses in the past 15/20 years approached it the way people start restaurants. You can’t slowly ramp up most restaurant concepts with a DIY budget— you need to invest a lot upfront, and you need a lot of existing expertise for even pretty trivial concepts. (And before people say food trucks and catering and private chef and the like— catering and private cheffing are totally different businesses with very different processes and institutional knowledge, and in most places, food trucks aren’t dramatically cheaper than opening a small restaurant.) Folks seem eager to start acting like a CEO and delegating things to people paid with investor money rather than making something themselves and getting it off the ground. Maybe that’s what the business requires? Maybe in software markets, customers aren’t interested in scrappy small players anymore, perhaps worried about lack of support, shitty UX, them going out of business or whatever.
Just speculation. Not even going to pretend I’ve got broad non-anecdotal knowledge on this.
Junior engineers didn't cost more than any other recent graduate, and as you could get away with a few rough edges in production for quite a while, you could put together an adequately balanced team for not much money.
The tooling was much worse, but the compliance burden was much less.
Did your friends in the .com era talk about "doing a startup" or "starting a business"? I feel like that's changed a bit, people are more calculated and cynical about how the game is to be played with respect to rounds, exit strategies and so on. The "startup" model specifically means something a bit different to "starting a business", around ambition, scale, investment model etc. All businesses need to be started, but not all businesses are startups.
Total scalability & strong network effect points toward a "get the monopoly, now" business model. Which, IDK, might suit some things but definitely isn't the right fit for all things tech.
I think this is the biggest factor that actually affects the fundamentals of selling tech. To my eye, every other aspect is some form of Gordon Gecko business insanity and/or VC people looking to stoke egos by making people with good ideas feel like big shot executives while figuring out how soon they can throw it all in a juicer and extract a bunch of cash.
This, but also it's a bit like gambling, this is the high risk / high reward way to do startups. The slower way is more stable, but you don't get to have fun with other people's money while you're building the business.
they eat ramen for 10 years, often even believing in someone else's dream without substantional equity to match the risk/reward profile. meanwhile, the plumber next door who started his own plumbing business is driving a ferrari on weekends.