Imbalance in Risk Between Founders and Investors.

Sep 25, 2024

After investing for 3 years and being currently in the early stages of founding a company, I recently thought a lot about different type of businesses and the risk-reward-imbalance between founders and investors.

It correlates a lot with what kind of company you want to build as an entrepreneur, but also has seen an interesting shift in the last years, especially with all the development in AI.

Falling Cost of Creating Software

Nowadays, you do not need a team of >2 engineers to build a SaaS product. What was considered an R&D effort that needs investment 10 years ago, is now easily achievable with just the founders being okay'ish engineers. Especially in vertical SaaS.

TBC...