As More Workers Go Solo, the Software Stack Is the New Firm | Andreessen Horowitz

We’re still in the early days of individuals leaving their firms as they seek additional freedom, flexibility, and ownership over their work. We’re also in the initial stages of the software platforms that can identify and provide the core, company-provided services these workers previously relied upon. By enabling individuals to make the leap from... See more

Whereas a firm might be able to qualify for a small business loan or working capital line, an individual would need to take a personal loan with a guarantee against their sole and family assets, even if the money would be used for their business... For example, Substack Pro gives writers an advance payment to support them branching out on their own... See more

One example of the solo stack is Shopify. This company provides ecommerce sellers with tools (websites, payments, etc.) and networks (drop shippers, suppliers, etc.) so that they can focus on producing, curating, or procuring the goods they sell.

There’s a pressing need — and an opportunity — to build vertical-specific tools for workers striking out on their own. Much has been written about the proliferation of vertical software tools that help firms run their businesses, but the next generation of great companies will provide integrated, vertical software for individuals going solo.

-Networks: access to communities that support the individual

-Operational support: functions like finance, legal, and HR that help people do their jobs

When it comes to benefits, a fitness instructor has different workers’ compensation needs than a designer who sits at a desk all day. Solo truckers can’t negotiate for fuel card discounts, but a software platform that aggregates demand could do so. There are also financial products that could be unique to solo workers, such as income-smoothing prod... See more

Solo workers venturing out on their own need to feel like they can replace the support of a company model. Traditionally, the firm brings three things to support the core craft or product: