article thumbnail

5 Startup Cost Realities Most Founders Underestimate

Startup Professionals Musings

Image via Flickr by Phil Gyford Starting a new venture still costs real money, even though the entry price has come down dramatically in last few decades. For example, I come from a software background, and back in the early PC days, it could easily cost half a million dollars for a team of professionals to produce a commercial product.

Cost 264
article thumbnail

Open Source Business Model

SoCal CTO

However, there are lots of companies that are making money from open source and freemium models. A friend of mine has a company that builds open source applications in spaces that are a bit less innovative than Elgg, but they do very well financially through the packaging and support models.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Requests for Startups in 2024

VC Cafe

New space companies – If we are entering a future with access to space being as routine and inexpensive as commercial air travel, shipping or trucking… what new businesses does that unlock? Commercial open source companies – being open source is a powerful way to gain developer adoption and sell to enterprises a lot sooner.

article thumbnail

9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

Minimize one-time sales in your business model. You need a stable customer base with an automatically renewing revenue stream, such as the subscription model. Every new business has unexpected pivots and adjustments, and outsourcing is easier to manage. Take advantage of low-cost modern tools and automation.

Merger 386
article thumbnail

Open Source Entrepreneurship

Steve Blank

The class teaches the three basic skills all entrepreneurs need to know: business model design. The Slides/Video tab on the top of this page has all the open source course material for my classes. They don’t ask for equity and charge just enough to cover the costs of pizza and the room rental. customer development.

article thumbnail

I-Corps @ NIH – Pivoting the Curriculum

Steve Blank

We’re changing the order in which we teach the business model canvas and customer development to better-fit therapeutics, diagnostics and medical devices. The Lean LaunchPad class uses the three “ Lean Startup ” principles: Alexander Osterwalders “ business model canvas ” to frame hypotheses.

article thumbnail

The future of search is being reinvented with generative AI

VC Cafe

Makes sense, as companies can adopt a SaaS model and not require huge scale to monetise via advertising. Challenges galore Like any tech advancement at scale, to succeed in this endeavour requires deep pockets: cloud resources and costly GPUs, expensive AI engineers and a working business model, all of which Google already has.