Time to Build: The New Golden Age of Startups

In the world of startup investing, there's a saying that never loses its relevance: "The best time to plant a tree was 20 years ago. The second best time is now." This proverb encapsulates a powerful truth: it's never too late to start something transformative. Today is the perfect time to build, to innovate, and to invest in the future.

The democratization of entrepreneurship: the collapse of costs

The cost of building a startup has fallen dramatically over the past two decades. Between 2000 and 2010, it decreased by a factor of 10; the same happened between 2010 and 2020. Now, in this decade, the cost will again fall by another order of magnitude. This dramatic reduction is not just a trend, but a fundamental transformation of the entrepreneurial ecosystem. What once required millions of dollars can now be launched with a fraction of that budget, democratizing access to innovation .

Let's consider two emblematic examples of startups that took advantage of the conditions of their respective eras. In 1999, Mercado Libre demonstrated the impact of building a platform in a developing region, capitalizing on the e-commerce boom and overcoming technological infrastructure limitations. It took Marcos Galperin and his team tens of millions of dollars from the start. Ten years later, in 2010, Stripe burst onto the global scene by simplifying online payments, leveraging the cloud and access to developer tools that would have been impossible in previous decades. The Collison brothers' first check was from Y Combinator for $30,000. Both examples reflect how startups have managed to adapt and thrive thanks to cost reductions and technological advancements.

Three forces have driven this deflation:

1. Cloud computing : The cloud eliminated the need for large investments in infrastructure at the start, allowing startups to scale on demand.

2. Open source software : What once required entire teams and expensive licenses is now freely available and constantly improving thanks to global communities of developers.

3. The kingmakers: Developers : Developers are the artisans of our era, capable of creating disruptive solutions quickly and efficiently. Tools like APIs and SDKs have democratized access to innovation.

Maybe your co-founder this decade will be an AI Agent.

Imagine a future where your co-founder isn't a person, but an artificial intelligence agent. It's no longer a fantasy: in this decade, AI has evolved from a tool to a true strategic partner in startup creation. These agents can analyze market trends in real time, suggest business strategies, optimize internal processes, and even code entire software modules.

An army of AI Agents could be tasked with designing A/B experiments on a digital platform, managing the supply chain, or identifying investment opportunities with surgical precision. Like a human co-founder, these agents will be able to learn, adapt, and improve over time, bringing a new dimension of efficiency and creativity to the process of building companies.

While emotional intelligence and long-term vision will remain key attributes of human founders , having an AI Agent as a co-founder can be the competitive advantage that makes the difference in a world where speed and innovation are key.

From bits to atoms+bits

We've moved from a decade dominated by bits to a new era: that of atoms combined with bits. If the digital revolution was marked by software and information, we will now live in a time where technological advances will directly impact the physical world.

• Advanced manufacturing : Technologies like 3D printing and robotics are transforming how we build products.

• Bioengineering : The ability to reprogram life itself opens up opportunities to solve global health and food problems.

• Clean Energy : We combine hardware innovation with data and AI to create sustainable solutions that will redefine entire industries.

Key capabilities to build the future

Kevin Kelly says change is inevitable . But more important than embracing it is developing the skills needed to thrive in this era. At Xperiment Ventures , we believe these are the four essential skills for entrepreneurs and teams:

1. Adaptation : The pace of change has never been faster, and the ability to adapt is key. This means embracing constant iteration, learning quickly, and always being willing to pivot.

2. Optimism : Building in challenging times requires an unwavering faith that things will continue to change.

Opportunities outweigh risks. Optimism isn't naivety, it's energy to keep going.

forward.

3. Proactivity : The future isn't expected, it's created. We must make intentional decisions and act boldly, aware that our actions shape the technological forces in our lives.

4. Urgency : In the world of entrepreneurship, the window of opportunity is as valuable as it is fragile. While others plan, true innovators are already executing. Urgency isn't about rushing, but about an unwavering determination to turn ideas into reality. Every day that passes is an opportunity that never returns.

It's time to plant

The ground has never been more fertile for those of us willing to build. Barriers have fallen, tools are more accessible than ever, and opportunities are ripe for the taking. The combination of bits and atoms marks the dawn of a new paradigm of innovation.

Planting a tree isn't just an act of patience and vision; it's also an act of faith in the future. Today, building a startup means planting the seed of something that can change the world, provide shade for future generations, and transform our lives in unimaginable ways.

This is the time to build, to act, and to imagine what seems impossible! The best time to build was 20 years ago . The second best time is now .

Juan Cabrera (@juanocabrera)

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(General Partner Xperiment Ventures)