The Diff | Byrne Hobart | Substack

In a 2010 essay, Chris Dixon wrote, "The next big thing will start out looking like a toy." Provocative. What he meant was that new technologies are often dismissed as toys because they undershoot user needs, and that that ones that make it out of toy phase and into the zeitgeist do so because they ride external forces.

There are essentially two business models right now: boring, useful things that can print money and tastemaker brands that can brute force cultural relevancy. Dumb $ is funding the middle: stuff that is neither useful nor cool enough to make it past current startup headwinds.

Techno-Industrials are addressing larger markets than most software companies can.

They use whichever tools they need to provide better solutions to key bottlenecks with better unit economics than incumbents.

They are more capital efficient than most investors expect.

And they have to be more strategically sound than the average software company.

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