James Sommers, aeon, Are coders worth it? here.
Which means that these days the cost of finding out whether a start-up is actually going to succeed isn’t hundreds of millions of dollars — it’s hundreds of thousands of dollars. It’s the cost of a couple of laptops and the salary you pay the founders while they try stuff. A $100 million pool of venture capital, instead of seeding five or 10 start-ups, can now seed 1,000 small experiments, most of which will fail, one of which will become worth a billion dollars.
And so there is a frenzy on.
You can see why I’m in such good shape. In this particular gold rush the shovel is me. We web developers are the limiting reagent of every start-up experiment, we’re the sine qua non, because we’re the only ones who know how to reify app ideas as actual working software. In fact, we are so much the essence of these small companies that, in Silicon Valley, a start-up with no revenue is said to be worth exactly the number of developers it has on staff. The rule of thumb is that each one counts for $1 million.