Gust

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Investors Do Not Fund Research And Development

Gust

I still get business plans, looking for an investor, that say all too clearly that the primary “use of funds” will be to do research and development (R&D) on some promising new technology, like superconductivity or cancer cures. Technology development. Prototype development. Funding sources are still the same as stage one.

Developer 148
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The Planned Iteration Startup Launch Minimizes Risk

Gust

All you old software development types will recognize the analogy to the traditional two year “waterfall model” of software development, which has been totally replaced with the Agile iterative methodology. Agile assumes and plans for iterative development, where requirements and solutions evolve as more is known and markets change.

Agile 163
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Don’t Let Investors Conclude Your Startup Is A Hobby

Gust

Software Development Process via Wikipedia. Develop your business plan. Product development process. Even when your startup is a one-man show and lots of fun, a “business” needs some discipline and controls to keep it from being defined as a hobby by investors, and assure some financial return.

Startup 187
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10 Key Traits Of An Ideal Entrepreneur Partner

Gust

If both of you are experts at software development, even though one loves design and the other loves coding, that still won’t get the marketing done. Look at the big picture first of development, finance, and marketing/sales. This is probably the best place to apply your “gut” feeling. Complementary skills. Passion for what they do.

Partner 179
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The Good, The Bad, And The Ugly Of Software Patents

Gust

The bad news is that patent trolls (non-producing companies that make their money from licensing patents) can squeeze the lifeblood out of unsuspecting entrepreneurs, as exemplified by the recent mess around Lodsys suing small Apple IOS developers. Yes, the software patent process is a mess.

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Startup Map & Trends Analysis – September 2012

Gust

Not surprisingly, many new startups across the world are in the development stage. This means almost 1 out of every 5 startups have a product in development, whereas less than 10% are product ready, and even less are in revenue stage, which make up only 3%. Check back soon to read October’s edition of the map and trends analysis.

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The Funding Gap

Gust

An experienced software engineer, for example, can develop a new mobile app with his or her own resources and market the product on the web with very little capital. There are several important sources of capital for entrepreneurs starting their businesses, depending on the stage of development of the company. ANNUAL US $$$.