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Venture Capital and consulting businesses are incompatible by nature. Venture capital is about scalability (i.e. cost per unit goes down when number of units g
by svennek 7y ago
Venture Capital and consulting businesses are incompatible by nature.
Venture capital is about scalability (i.e. cost per unit goes down when number of units goes up - preferably considerably...)
Consultancies are unscaleable business by design, because they sell "hours". Every employee can deliver a certain number of hours only, so per-unit (marginal) cost is flat.
And therefore VC and consultancies does not match... at all..
- googlycooly 7y agoYea but some companies like Gigster, Pivotal managed to raise VC funding, even though they work in the same model. Any idea why?
- detaro 7y agoGigster is in many ways a market place, connecting Customers to Freelancers. Pivotal does services, but also has products they offer the services around, makes the majority of money from licenses.