The Startup Elements Beyond Software Engineering
There is a significant shift happening in what venture capitalists are looking for in the new era of startups*. Hint. It’s not just technology.
*I am excluding deep tech here.
Software Engineering is Becoming a Commodity
In the 1990s, I played a simple DOS game called Tank Wars. The other day, I developed the same game from scratch leveraging prompt engineering in ChatGPT. Ran and tweaked it slightly in Pycharm and bam had the same game. Took me under 1 hour. If I was to build it without using generative AI, it would have taken me a month with a lot more frustration.
As AI disrupts software engineering, I do not believe it is replacing all engineers yet but will make them more efficient therefore more code can be written faster, more products can be built more cheaply. In short this is becoming a commodity.
Increase in Product Competition
From AWS to Vercel, from Firebase to Bubble, the infrastructure required to launch a product has become radically simplified. A Founder can build full-stack apps without touching a server. They can ship cross-platform apps with no native code. What used to take a team of 10 engineers now takes one determined founder and a laptop.
The amount of open source and templates found on the Internet is so abundant. Libraries in GitHub, Figma, Notion Templates, and more have turned product development into copycat haven. Just think about a dashboard UI for login flow. They all follow similar paths. This can be cloned.
So what are venture capitalists looking for now as the X factor? Here are some elements.
The Power of Community
Traditional media and advertising no longer dictate product success. Consumers today are skeptical of polished reviews and generic endorsements—they crave authenticity, practical insights, and real-world use cases. This shift has paved the way for online creators and influencers to take center stage. With just a smartphone and internet connection, anyone can share opinions, tutorials, and experiences that resonate. As content creation becomes faster, cheaper, and more accessible, the power of influence has decentralized. Yet, those who’ve built large, trusted followings now hold more sway than ever—capable of accelerating or stalling a product’s adoption with a single post.
The Persuasion of Storytelling
When it comes to building enduring tech companies, product is essential—but the story is what spreads. The best founders often fall into two powerful storytelling archetypes: product-led storytellers and charismatic storytellers. Both are masters of narrative—but they wield it differently.
Product-led storytellers draw you in with clarity, conviction, and craft. They speak not in grand gestures but in clean APIs, fast load times, and why it just works. Think:
Tobi Lütke (Shopify): Describes his platform as “arming the rebels” in commerce.
Patrick & John Collison (Stripe): Turn boring payments infrastructure into an elegant story about powering the internet economy.
Melanie Perkins (Canva): Frames the journey from designing yearbooks to democratizing creativity for 100+ countries.
Their stories are grounded in user problems and the joy of fixing them. They don’t just pitch vision—they pitch tools that scale vision.
Charismatic storytellers trade in emotion, identity, and momentum. They don’t just describe a product—they embody a mission. Think:
Alexis Ohanian (Reddit): Tells Reddit’s chaotic rise with humor and heart, turning users into a tribe.
Naval Ravikant (AngelList): Blends tech, philosophy, and leverage into a worldview you want to subscribe to.
Jack Dorsey (Block): Uses minimal words, but each one feels like it belongs in a manifesto.
These founders don’t just explain what they do—they invite you to believe in something bigger.
As Long As Humans have Egos, Brands will Prevail
In a world overflowing with choices, branding has become a powerful differentiator—not because it explains what a product does, but because it taps into something deeper: the human ego. A strong brand acts as a shortcut in decision-making, helping buyers navigate complexity by signaling quality, identity, and trust. We’re drawn to brands like Apple, Tesla, and Uber not just for their products, but for what they represent. They reduce friction, evoke emotion, and offer instant meaning in a sea of sameness.
The strongest brands don’t just sell functionality—they sell feelings. People fall in love with stories, not tools. A good product solves a problem, but a great brand builds a narrative the customer wants to be part of. In an age where software can be cloned and features copied overnight, the brand is what remains. It’s what makes someone line up for a new release, tattoo a logo on their body, or proudly share what they use. Products come and go—but a brand that speaks to the ego endures.
Conclusion
In this new era of venture-backed innovation, technology alone is no longer the moat—it’s the medium. As software engineering becomes commoditized and infrastructure barriers fall, the real competitive edge lies beyond the code. Venture capitalists are now looking for startups that win hearts, not just markets: companies that build community, master storytelling, and create brands that resonate with identity and aspiration. In a world where products can be copied in days, what can’t be cloned is a movement—anchored by authenticity, amplified by creators, and fueled by the timeless human need to belong to something bigger.