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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.

VentureDeal

 

Don Jones
CEO, VentureDeal

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