The declining cost of generating a minimum viable software product has changed the way software startups raise money. Back in the 1980s, it took tens of millions of dollars to create and test a beta version of a software product. By 2014, that cost had fallen to around $100,000.
This enormous decline has shifted how software start-ups raise money. The traditional model of raising money from individual angel investors followed by institutional venture capital has given way to tapping quantitative micro venture capital (QMVC), and business accelerators. (In a future column I will discuss the move toward business accelerators, but today I will focus on the shift to QMVC.)
How the Declining Cost of Getting to Market Has Impacted the Financing of Software Startups
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.