GrowSpace ’s Post

AgTech Entrepreneurs - there are a lot of things happening at the same time that create an opportunity for one-person startups to build an MVP and go-to market for $50-100k in 3-6 months v the current model of $2-3M and 18-24 months. This reduction in time and capital creates the viability of a $50-100M exit without a heavily diluted cap table and a bunch of venture capital money (i.e. founders keep most of the equity). More details in the full article - here is the short version: 1) data is collected by more and more tractors, implements, and sensors - which will continue to drive the value of data and data sets lower; 2) significantly reduced R&D and infrastructure costs make MVP possible with time and cost savings of 50-80%; 3) tools like AI chatbots can reduce key support function costs for things like customer support by 50-70%; 4) because analytics are software based, there is an opportunity to test customer acquisition channels online (search ads; social ads; email); and 5) all of this produces a different capital structure for startups – and the lower capital requirements make $50-100M M&A events viable (a lot harder when your last post-money valuation was $120-150M or more). If a few founders are able to prove this model out, it has the potential to change how founders look for co-founders, how VCs think about early v late stage investing, and how strategics think about M&A (since they could choose to take more swings and at bats at lower per acquisition cost). Final thought - trying this model out gives founders more at bats since the startup gets to exit velocity in a much shorter timeframe. The cost of failure will be measured in much shorter timeframes and much less capital destruction if this model can be proven out for some startups. Audre Kapacinskas Sumeeta Salvador Rob Trice Seana Day Adam Bergman Carter Williams Shane Thomas Rhishi P.