Venture Capital Startups

Published: 4/15/2011 10:13:09 AM

A lot has been written over the past few years about how inexpensive it is to start up a consumer Internet company.

The complexities have generally been reduced at the initial stage of development, due to the availability of cloud infrastructure rather than having to source and manage server hardware.

However, it doesn't take long for a startup to need to hire additional talent, and talent is not cheap. An 8-10 person company can easily cost $60,000 per month in salaries alone, especially if it is engineering intensive.

So while I agree that when a company is at the stage of two founders and some code it is relatively inexpensive, the notion that small consumer startups are cheap to build into great companies is largely a myth.



Don Jones
CEO, VentureDeal

Blog Home

Free Trial

Want unlimited access to the complete database with thousands of technology companies, VCs and transactions for only $25 per month?

Start your Free 14 Day Trial now – no obligation or credit card required.

Free 14 day trial. No Obligation. Click to Register.

RSS Feeds

Add this page to your RSS aggregator page with a simple click of a button below.

Add to My Yahoo! Add to Netvibes