No code & dev tools (2024)

1. Beating legacy

   Developers already work with established software companies, many of which are building advanced features of their own to be integrated into workflows that users are already familiar with — they’re also comfortably priced against existing enterprise contracts. GitHub’s co-pilot is a good example of what startups are trying to emulate with a fraction of the resources.

   While the existence of legacy players is arguably almost never a good enough reason not to build a company, startups will need to focus on so-called ‘super niches’ to scale up and iterate on common frustrations with existing products.

2. The Frankenstein dilemma

   Can one ever build something that will likely kill them? Figuratively, that’s a common consideration in the dev tools space — like the story of Victor Frankenstein, the hubris-driven scientist indirectly killed by the monster he created.

   Technical talent is expensive, and dev tools companies require the best in the market. The highest bidders are securing ambitious employees who are willing and able to build the most advanced products, even if they directly threaten their colleagues' livelihoods.

   But startups will still need a market to serve for years to come. While most people will be able to code with ease, the consequence to developers and engineers will likely be upskilling and stronger barriers to entry. Headcount cuts, however, can’t be ruled out for the least productive.

3. Coding the coder

   Most — if not all — large language models (LLMs) are now able to generate professional level code. Some do it better than others, and they cyclically overtake one another with each product update. While most dev tools platforms operate as aggregated points of access to established LLMs, engineering-specific foundational models are planning to gain a competitive edge over generalist ones.

   That’s the case for now Paris-based Poolside, Europe’s best funded dev tools startup, which is building engineering-specific foundational models and assistants and has some $625m to back its scaling process.

Who early stage startups are up against