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May 24, 2003

[FiRe] Increased Startup Costs to Break-Even

These are notes from the Future in Review conference. More here.

Bill Janeway of Warburg Pincus mentioned that, because of (a) the increased complexity of going to market and (b) the changed business models which have now been switched a lot to payment-for-value-over-time (e.g. transaction-based payments, or subscription), the approximate costs for a startup to go to a state of cash-flow break even have increased from $20m to $80m-$100m.

One more explanation why there are less startups right now, and even less successful ones.

Posted by Stefan Smalla on May 24, 2003 at 3:19 | Permalink