Wednesday, May 27, 2009

Looking at creating a startup company?

An article about What VCs Are Investing In has two interesting couple paragraphs:

Enthusiasm for Web startups has, however, clearly changed since the height of the Web 2.0 boom. This is due partly to tighter economic constraints, but also to plummeting costs of starting Web businesses as cloud-computing infrastructure has spread. Since less capital is required to start a company, there is less need to turn to outside investors.
"I think most [Web] startup companies should not take venture-capital money," said
Jeff Fagnan, a partner at Atlas Venture, during a panel discussion. He cited, in particular, companies building lightweight Web applications or software for portable devices like the iPhone. In some cases, Fagnan said, venture capital may damage a startup by creating conditions that push the company to aim too high from the outset.

I wonder if Venture Capitalists will have less impact as more people realize that Paul Graham is right, Moore's Law means startups are much cheaper.

If you, or your children, are looking at creating a technology company, now may be a good time.

Technorati tags: opportunity, Paul Graham

1 comment:

ChowderKids said...

My professional (non-ChowderMom) work is launching a Financial Futures Challenge next week with NYSE and K12. It's asking kids to come up with ways to teach other kids about the stock market and investing in their future. Thought you might be interested in that. Or my kids' blog ;)