Today I was listening to an interesting conversation on YouTube that included several VC investors. It touched on a variety of topics, but one that stuck with me is why, from a talent-availability perspective, now is the best time to start a company. Here are some takeaways:
- The cost of talent is lower internationally than in the U.S. This labor arbitrage isn’t new, but managing international teams is easier than ever now. A company can build an entire team that’s international, which materially reduces expenses and burn.
- AI is helping teams be 20%–30% more productive, which means that small teams are efficient and fast. This could allow small teams to reach hundreds of thousands or millions in revenue.
- Large public tech companies’ headcounts are projected to be flat or negative, which will lead to an abundance of technical talent being available. They were talking about the Silicon Valley area, but there could be a case that this is true in other places too.
I agree that talent availability has changed from what it was three or more years ago. Whether we’re entering the golden era of talent availability is another question. I’m not sure, but time will tell.
If you’re interested in listening to the talent-availability part of this conversation, you can go here.