2 ms·
my research seems to indicate you start off low, plateau at around a quarter and then once you have a niche you can see these high values. I've heard that $1-$5
by keefe 15y ago
my research seems to indicate you start off low, plateau at around a quarter and then once you have a niche you can see these high values. I've heard that $1-$5 are common in the sense that you see them, not in the sense that they are within a small number * standard deviations from the mean.
overall the principle holds but the investment is an accelerator, once you have users you have competition.
- NY_USA_Hacker 15y agoOkay, to 'out do' the competition. But that is a relatively new reason or emphasis if only because in the past 'venture capital' could invest in something on the back of a napkin and was needed for a lot in buying hardware and software, office furniture, recruiting, salaries, doing the development, building a marketing organization, starting the selling cycle, etc. before any revenue. Now a motherboard for a 4 core processor with a 3 GHz clock is about $100; a server farm style 1 TB disk drive is about the same; Unix style software is not very expensive, and the Microsoft BizSpark program will let a startup use Microsoft software for free for a while, etc. The venture people want the development done, the site live, users, and, thus, likely revenue, and users and revenue growing rapidly. So, the situation now is much different than before. So, before there were a lot of strong reasons to take equity funding, and now the reasons are much weaker.