Very interesting ... I think this is true for a class of startups, but not all. The question for this approach will be how to achieve scale (of if they even wan

Very interesting ... I think this is true for a class of startups, but not all. The question for this approach will be how to achieve scale (of if they even want/need to) to achieve their goals. While profitability can be achieved on $15k, is it sustainable and can it achieve scale on that money? Cloud computing may help, but may not solve it all. Facebook, Google, etc. all needed VC $ to fuel scale. Implications exist for founders and early investors if future capital is needed for scale or an exit. If the goal is to either sustain the profitable model and owner control at lower revenue, then this model works. Also, if the goal is to sell to a larger company to achieve an exit and return, then it also works. All depends on the market opportunity and founder goals, but don't think it kills the need/importance of VC. If the goal is to capture a significant market and be the leader, and software markets tend to be winner take most markets, then achieving scale fast is necessary and VC$ necessary even in a cloud model. Under the new landscape articulated by PG here, the underlying platform could be built & proven with angel money or no money, and thus preserve more upside and better terms for the founders that choose to seek scale in large markets.