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Silicon Valley’s ‘Tiny Team’ Era Is Here

Startups used to brag about valuations and venture capital. Now AI is making revenue per employee the new holy grail.

Illustration: Irene Suosalo for Bloomberg

In the era of startup “blitzscaling,” which lasted roughly from Facebook’s IPO in 2012 until WeWork’s bankruptcy filing in 2023, market capitalization and total capital raised were prized metrics. The ultimate milestone was reaching “unicorn status” — a $1 billion valuation that was often accompanied by rapid hiring.

These days, bragging rights are going to entrepreneurs who keep headcount the lowest.