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"It just doesn't cost VC-scale capital for one guy (plus perhaps a handful of mechanical turks) to create a website that makes enough money for that one guy to
by Harj 19y ago
"It just doesn't cost VC-scale capital for one guy (plus perhaps a handful of mechanical turks) to create a website that makes enough money for that one guy to live on."
vc's don't care about companies on that scale - it doesn't fit the vc model of needing one massive hit to cover the losses across the portfolio so they don't lose anything by missing out on that kind of deal.
launching a web app doesn't need vc money but building one of those massive hits does. since those companies (yahoo/google/facebook/etc) have the biggest economic impact, there'll always be a need for VC's, even if the standard terms of deals changes.
- cglee 19y agoI personally think the reason a 'massive hit' needs a lot of money (and therefore VC) is for the hardware/bandwidth/infrastructure costs. Those costs have not come down per the proportions that software costs have. However, services such as AWS should help for all apps right below the 'massive" threshold, which is the vast majority of apps.