In 2023, we’ll see more Silicon Valley startups that operate like small businesses. And some of them will have big outcomes. Perhaps even billion-dollar ones. I call this phenomenon the Silicon Valley small business (an SV-SB for short).
I think its more complex than that - first the article starts by talking about startups, but later on makes it clear it only means TECH startups, which is a small subset of all startups. I do mostly mentoring of technology (not "tech") startups with an impact focus - that's a whole other category. In the startup mentoring space we often use the terms SME (Small to Medium Enterprise) - current size ~2 success is doubling in size; versus SGB - current size ~2, success is 10x or 100x. These could be what the author has rediscovered and called Silicon Valley Small. With the VCs increasingly chasing mythical unicorns i.e. very low likelihood of success, but billion+ exit, there are of course a bunch of startups chasing that funding but the risk from a startup entrepreneur perspective look much worse. The VC gets to spread their risk across multiple potential unicorns, the entrepreneur only gets one chance and most will fail with a zero (or negative) return. With VCs focused on potential unicorns, there are lot of good, very investable, SGBs that are not getting funding, even though they have the a high likelihood of delivering the 10x return previously sought by VCs. Most of my mentees (and my previous companies) fall in that category.
Very interesting, I happened to start a SV-SB few months ago! Feels like reading about myself :D
One of my favorite pieces of the year so far! Have shared it with more than a few friends at this point
I am doing one of these! It was so cool to read your post and realize that more people are going to be building companies this way.
Is the SV-SB a common/known term or you have come up with this?
I think its more complex than that - first the article starts by talking about startups, but later on makes it clear it only means TECH startups, which is a small subset of all startups. I do mostly mentoring of technology (not "tech") startups with an impact focus - that's a whole other category. In the startup mentoring space we often use the terms SME (Small to Medium Enterprise) - current size ~2 success is doubling in size; versus SGB - current size ~2, success is 10x or 100x. These could be what the author has rediscovered and called Silicon Valley Small. With the VCs increasingly chasing mythical unicorns i.e. very low likelihood of success, but billion+ exit, there are of course a bunch of startups chasing that funding but the risk from a startup entrepreneur perspective look much worse. The VC gets to spread their risk across multiple potential unicorns, the entrepreneur only gets one chance and most will fail with a zero (or negative) return. With VCs focused on potential unicorns, there are lot of good, very investable, SGBs that are not getting funding, even though they have the a high likelihood of delivering the 10x return previously sought by VCs. Most of my mentees (and my previous companies) fall in that category.