A new $10 million venture fund, Shiva, is betting that the next wave of industry-defining software will be built by teams small enough to fit in a single car. Founded by entrepreneur Sahil Bloom and Ben’s Bites newsletter creator Ben Tossell, the fund is targeting startups with one to ten employees. Their core belief is that AI development tools have now advanced to a point where a handful of engineers can achieve what once demanded an entire department.

Shiva’s strategy deliberately avoids the expensive race to build foundational AI models. Instead, it focuses on the application layer—companies using existing AI to create vertical software, automated services, and new tools with capital efficiency. Checks will range from $100,000 to $500,000 for pre-seed and seed-stage ventures, aligning with the lean philosophy.

The fund’s premise hinges on a compelling financial picture. A two-person operation generating millions in revenue, unburdened by large payrolls or office leases, promises extraordinary margins. Proponents point to examples like Midjourney, which operates with a surprisingly compact team relative to its impact.

Yet, significant questions remain. While AI accelerates building, scaling a business involves customer support, compliance, and strategic decisions that still rely heavily on human effort. Easy replication by competitors is another risk; if AI lowers build barriers, what creates a lasting advantage?

Shiva enters a venture landscape still adjusting after the boom of 2021. While massive funding rounds for AI labs continue, there is a parallel appetite for smaller, efficient funds. Shiva embodies that shift.

The fund has set 2026 as a target to demonstrate its thesis—an ambitious timeline. The broader trend of AI reducing software development costs is undeniable. Whether that translates into durable, billion-dollar businesses built by tiny teams is the multi-million-dollar experiment Shiva is now funding.

Source: Webpronews