Deflation in economics occurs when prices drop, often leading to reduced consumer spending and a negative feedback loop that can harm economies. The author connects this concept to a trend in startups, calling it "technical deflation." It’s become easier and cheaper to build software, primarily due to advances in AI. As tools and models improve, the incentive to delay projects increases. If developers expect future technologies to make their work simpler, they might postpone building products now. This creates a scenario where potential innovations get sidelined, similar to how consumers might hold off on purchases during deflationary periods. The article highlights how AI advancements have accelerated development velocity. Startups can swiftly create applications that once required extensive resources and time. For example, creating a desktop app was previously cumbersome, but with current AI tools, the timeline for building one has drastically diminished. The author reflects on personal experience, noting that waiting for better tools can often seem more appealing than pushing through with current capabilities. The discussion shifts to the advantages of entering a market later. Companies that launch after their competitors can learn from the latter's mistakes and leverage improved technologies to succeed more easily. The author provides examples like Doordash and Lyft, which entered their respective markets after incumbents and found success. In today’s landscape, with software development becoming increasingly accessible, the focus for startups may need to shift from just building products to optimizing distribution and understanding customer needs. The emphasis should be on how to stand out in a space where building is becoming more straightforward.