There’s an interesting phenomenon in the computing world, the foundation of which is Moore’s Law. Each iteration of computing infrastructure allows for much more difficult problems to be solved, and makes solving the same old problems faster and easier. There are now more people using this compounding system to make new and better tools for others to solve problems with.
Christina Cacioppo writes in the Union Square Ventures blog about her observations about what comes next. She has observed an increasing number of startups building small services to enable other technology startups to do more in a shorter amount of time:
Entrepreneurs in this summer’s accelerator programs sliced off pieces of what it takes to build and run a web or mobile application and offered those slices as services. “I built this piece of technology three times at three different companies. I built it a fourth time, and that’s the service my company offers,” a Y Combinator CEO pitched.
She also notes technology’s effect on the size of effective companies, and how easy it is to cut out the middle man:
Just as blogs allowed talented writers to build audiences without being affiliated with large media organizations, and as Twitter and Tumblr allowed news- and tastemakers to succeed outside of established news or media properties, new web services will allow individuals to engage with customers without needing to work for a firm.
Bottom line: in the technology realm, the barriers to starting a business are getting lower all the time, and the tools to make that happen are increasing – all thanks to Moore’s Law and the people taking advantage of it.
Ms. Cacioppo is part of the investment team at Union Square Ventures