Toward the $2,000 Startup
Everyone knows the cost of starting up an Internet company has dropped precipitously over the past few years. But if current trends keep up, it could be so cheap that no one will need venture or angel funding to do it. That was a takeaway from a recent conversation with David Rose, the chairman of the New York Angels and head of early stage firm Rose Tech Ventures. Every few years, he says, the cost of starting an Internet company has dropped tenfold. Years ago, it cost about $2 million to get a strong concept to product launch. Shortly after the burst of the Internet bubble, the cost got down to a couple hundred thousand. Recent angel-funded companies have gotten there on $20k. And now, the cost is heading lower.
12 November 2009•1 min read
