AI Productivity Tools Give Startup Founders More Leverage and Equity
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AI tools like GitHub Copilot give startup founders more leverage and ability to get more done with less funding. This means they can retain more equity in their companies.
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With the same $2 million in seed funding, founders can now survive 4 years instead of just 1.5 years. This gives them time to gain traction without further dilution.
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Founders have shifted focus from raising the most money at the highest valuations to reaching profitability and retaining company ownership.
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Palihapitiya predicts tens or hundreds of millions of 1-2 person startups enabled by AI productivity gains in the future.
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He says VC role will change profoundly and possibly not exist as financial engineering becomes less necessary in an AI world.