[AngelList founder Naval Ravikant] came back to a theme he’d touched on earlier in the interview, about how the world would be increasingly made up of very small startups interacting with each other through APIs. No big corporations.
To see how radical this idea is, look around the startup ecosystem. All of the most promising Web companies have done mega growth rounds at huge valuations. Facebook raised well over $1 billion in private equity before even going public and employs thousands. Even VCs and entrepreneurs who believe startups can change the world, believe you have to get big eventually. Sure you can be capital efficient at the beginning, but not at the end of a journey.
Ravikant argued that Instagram wasn’t a fluke — it’ll start to be the norm. He countered criticism that Instagram didn’t monetize by saying they only would have needed a handful of people to do it. And he went a step further, saying that Google and Facebook likely didn’t need 80 percent of the people working there. He argued Facebook could be built today with just a few hundred people.
This will be possible, he says, because future things will start to be outsourced that we couldn’t dream of being outsourced today. And whole armies of workers would wake up everyday, log onto whatever crazy hardware we’re using at the time, and get a daily assignment from a variety of companies — much like an Uber driver.