AI and automation fuel rise of high-valued micro businesses with tiny teams, says Bessemer VP Byron Deeter, who predicts 10-person startups hitting billion-dollar valuations by leveraging tech to boost productivity without expanding staff.

Byron Deeter, a partner at Bessemer Venture Partners, says technology is ushering in a new era of highly valuable "micro businesses" — small companies with billion-dollar valuations that operate with minimal staff. Speaking on the "20VC" podcast, Deeter highlighted how advancements in AI and automation are enabling startups and established firms alike to scale rapidly without expanding their workforce. He praised the shift in mindset among executives who are now equipping employees with powerful tools to focus on creative, strategic, and high-impact work rather than repetitive tasks. "We're going to give you all the tools in the world to supercharge your daily job so that you're doing the cool stuff again," Deeter said, reflecting a growing sentiment among business leaders. Deeter noted that companies are increasingly able to grow revenue and market presence without hiring more people. "I think we're going to see the era of the micro business," he said. "I think we're going to have 10-person companies that are crossing billion-dollar valuations." He added that this trend is beneficial for the broader economy, as it allows for faster innovation and more efficient resource use. He pointed to improvements in productivity tools that are transforming industries such as legal, medical, and accounting by automating manual processes like transcription, data entry, and document summarization. These tools reduce errors, save time, and free up professionals to focus on higher-value work. This shift comes amid widespread layoffs at major tech companies. In early 2025, Meta cut 5% of its workforce, citing a need to eliminate underperforming roles. Microsoft also announced multiple rounds of job reductions, including a major layoff of 9,000 employees in July. These moves underscore a broader trend of companies leveraging technology to boost efficiency and maintain competitiveness. Deeter’s portfolio includes leading AI and software companies like Anthropic, Canva, and DocuSign — all of which exemplify the micro business model. Their success demonstrates how small, agile teams can achieve massive scale through technology, innovation, and strategic use of automation.