> Startups used to brag about valuations and venture capital. Now AI is making revenue per employee the new holy grail.
The corrected form is:
> Startups used to brag about valuations and venture capital. Now AI is making rate of revenue growth per employee the new holy grail.
Specifically, as with all growth capitalism, it is long-term irrelevant how much revenue each employee generates. The factor that is being measured is how much each employee increases the rate of growth of revenue. If a business is growing revenue at +5% YoY, then a worker that can increase that rate by 20% (to +6% YoY) is worth keeping; a worker that can only increase revenue by 5% contributed +0% YoY after the initial boost and will be replaced by automation, AI, etc. (This is also why tech won’t invest in technical debt: it may lower expenses, but those one-time efficiencies are typically irrelevant when increasing the rate of growth of income results in far more income than the costs of the debt.)
> Startups used to brag about valuations and venture capital. Now AI is making revenue per employee the new holy grail.
The corrected form is:
> Startups used to brag about valuations and venture capital. Now AI is making rate of revenue growth per employee the new holy grail.
Specifically, as with all growth capitalism, it is long-term irrelevant how much revenue each employee generates. The factor that is being measured is how much each employee increases the rate of growth of revenue. If a business is growing revenue at +5% YoY, then a worker that can increase that rate by 20% (to +6% YoY) is worth keeping; a worker that can only increase revenue by 5% contributed +0% YoY after the initial boost and will be replaced by automation, AI, etc. (This is also why tech won’t invest in technical debt: it may lower expenses, but those one-time efficiencies are typically irrelevant when increasing the rate of growth of income results in far more income than the costs of the debt.)