Thread by @DavidSacks

Startup Software is the new Enterprise Software.

Startup Software = tools that make it easier to create and build new companies. Eg Stripe, Shopify, WeWork, Plaid, Intercom, Outreach, etc etc.

This is the sleeper category in B2B. /1

Why Startup Software? Startups are not just a better entry point to the market (simpler product requirements, quicker sales cycles), the startup economy is now sufficiently large and dynamic to turn startup tool providers into unicorns. /2

Plus, successful startup tools can always move upmarket over time. So Startup Software often becomes Enterprise Software (eg AWS, Slack, Zoom). /3

There are so many tools that connecting all of them has become a valuable business (eg Segment). Stacking platforms multiplies the effect, which is that entrepreneurship gets easier. /4

The widespread availability of venture capital helps to fuel this trend while benefiting from it. The question for an investor to ask is: does this startup make life easier for other startups? If so, major tail winds. /5

The proliferation of startup-creation tools and platforms is the #1 reason I’m bullish on the US economy. It’s never been easier to create a new company. (This also creates a lot of noise and excess, which is why people can miss the bullish underlying trend.) /6

The future of the economy is more likely to be defined by company-creating tools & platforms than job-killing robots. /7 //