The venture capital (VC) industry is experiencing a significant transformation as advancements in generative AI reduce the complexity of software development, raising questions about the future role of software engineers and VC funding models. Amidst this shift, the importance of identifying areas of friction in the market is emphasized, as these are believed to be where real value can be created, leading to a focus on businesses that navigate these challenging environments successfully. The article discusses the ongoing evolution of developer tools and the changing landscape of entrepreneurship in a world increasingly characterized by reduced friction.