AI Lowers Barrier to Startups... You Can Create a Unicorn with Just 3 People
Date
Nov 15, 2024
Classification
- Solo Freelancer / Personal Branding
Lee Taek-kyung, CEO of Mashup Ventures and a "first-generation internet venture" figure, explains the changes in the startup environment brought about by the era of artificial intelligence (AI) on the 14th. / Courtesy of Mashup Ventures
"Three employees are enough": The startup equation for the AI era predicted by a first-generation venture godfather
🫑 3-Line Summary
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Lee Taek-kyung, co-founder of Daum and CEO of Mashup Ventures, predicted that with the advent of an era where AI assists in development, marketing, and management, it is possible to build a unicorn company with just three people.
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As the threshold for starting a business has lowered but the competition for survival has become as fierce as graduating from university, he cited 'communication skills' and a 'constant learning attitude' as the immutable core competencies of an entrepreneur.
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Mashup Ventures changed its name to strengthen its expertise, increased the investment size per company to a maximum of 500 million won, and brought in partners from tech startups such as Moloco and Publy to provide support.
🥦 Insight
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AI is not a 'cheat code,' but 'basic equipment' that everyone now possesses.
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CEO Lee Taek-kyung’s words sound like tremendous hope and, at the same time, a chilling warning to early-stage entrepreneurs. This is because the statement "it is possible with just three people" implies that a lack of manpower or capital can no longer be an excuse.
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In the past, managing servers and creating apps were barriers to entry in themselves, but now those barriers have disappeared. The fact that anyone can create a decent product using AI paradoxically means that 'anyone can become my competitor.' As CEO Lee used the analogy, entering university (starting a business) has become easier, but graduating (success) has become much more difficult.
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What matters now is not 'what is made (What)' but 'who and how it is operated (Who & How).' While AI can write the code, sharing the team's vision, managing funds, and defining the customer's real problem (PMF) remain the responsibility of the human founder. To avoid swinging in vain even while holding the powerful leverage of AI, one must ultimately return to the 'basics.' For small, elite teams, the ability to communicate and connect ideas will be the key to survival.
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In this era of artificial intelligence (AI), you can grow a company into a unicorn with just three employees.
Lee Taek-kyung, CEO of Mashup Ventures, emphasized on the 14th, “As mobile platform cloud services replace traditional servers, the number of engineers required has decreased to about three.” He added, “In the era of generative AI, AI handles everything from technology development and marketing to establishing management strategies and data analysis, making it possible to start a business with a small, elite team.” CEO Lee is a leading first-generation internet venture entrepreneur in Korea. He co-founded Daum Communications (now Kakao) in 1995 and launched services such as Hanmail and Daum Cafe. In 2008, he transitioned into a venture investor, investing in early-stage startups and supporting their growth. He has achieved success through investments in companies such as Today's House (Bucketplace), MyRealTrip, and Remember (Remember & Company). To date, he has invested in over 160 companies.
CEO Lee stated that competition in the startup world has become fiercer. He remarked, “Just as the barrier to entry for starting a business has lowered, making it easier to enter university but harder to graduate, it has become more difficult to achieve results.” Nevertheless, he noted that the essential conditions for success for founders remain unchanged: communication skills and a constant willingness to learn. “If you cannot communicate, you cannot handle sales, marketing, or attract investment, and it is difficult to secure talented personnel by demonstrating a vision,” CEO Lee said. He added, “Since trial and error is inevitable, you must know how to learn quickly, respond effectively, and continuously update yourself.”
He points out that while the factors behind successful startups vary, the reasons for failure are similar. "Common cases involve hiring the wrong people and failing to manage funds," CEO Lee said. "There are also many instances where startup ideas fail because they misidentify market problems and deviate from PMF (Product-Market Fit)."
Mashup Ventures changed its name from Mashup Angels this February. CEO Lee explained, “We changed the name to present ourselves as a firm more specialized in investment,” adding, “We also increased the investment scale from 300 million won per company to 500 million won.” To strengthen expertise, the
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