
Why Tiny Startups Can Still Beat the Big Guys. Not Because Your Team Is Smarter - rmason
https://www.saastr.com/what-are-the-advantages-of-being-a-startup-vs-being-an-established-business/
======
vikramkr
Warren buffet often mentions in his interviews that the sorts of small size
deals that they used to pursue when Berkshire was smaller just sont move the
needle enough anymore to be worth investing into. It's an interesting example
of how we dont analyze absolute values of dollar return on investment or truly
analyze all opportunities and invest in all NVP positive ones even if
seemingly very small (though I guess a seed stage investor is a good
counterexample) - and that we aren't always the greatest at evaluating the
power laws that drive startup investing. Those same power laws apply to these
internal corporate projects as well. I wonder what a company comfortably able
to stomach investing in small things that dont seem to be able to "move the
needle" enough to be worth it would look like - the biggest example I can
think if might be AWS where a small thing turned into a huge business, could
we be seeing more of that if companies were managed and capital was deployed a
bit differently?

