James Somers – Web developer money: " . . . start-ups have gotten cheaper. A web start-up today has almost no fixed capital costs. There’s no need to invest in broadband infrastructure, since it’s already there. There’s no need to buy TV ads to get market share, when you can grow organically via search (Google) and social networks (Facebook). ‘Cloud’ web servers, like nearly all other services a virtual company might need — such as credit-card processing, automated telephone support, mass email delivery — can be paid for on demand, at prices pegged to Moore’s Law. You can see why I’m in such good shape. In this particular gold rush the shovel is me Which means that these days the cost of finding out whether a start-up is actually going to succeed isn’t hundreds of millions of dollars — it’s hundreds of thousands of dollars. It’s the cost of a couple of laptops and the salary you pay the founders while they try stuff. A $100 million pool of venture capital, instead of seeding five or 10 start-ups, can now seed 1,000 small experiments, most of which will fail, one of which will become worth a billion dollars. And so there is a frenzy on.. . ."
more news below
Follow @vcexp
No comments:
Post a Comment