Picked up a great post from Paul Graham looking at how the relationship and dependency between startup and VC’s could change fundamentally. And ironically the recession (it’s official now) could be the catalyst.
“VCs and founders are like two components that used to be bolted together. Around 2000 the bolt was removed. Because the components have so far been subjected to the same forces, they still seem to be joined together, but really one is just resting on the other. A sharp impact would make them fly apart. And the present recession could be that impact.”
Although it clearly takes more than Paul’s stated $3,000 a month revenue for a software team to be “break-even” and have a half-decent standard of living in the US. Given the low level of capital needed to get going now, the equation has changed significantly.
The challenge to the electronic design industry is how to leverage the new business models explored, practiced and constantly being refined in the enterprise software industry in building their businesses - Software-as-a-Service models in particular.
Couple SaaS with a design services business and you have a combination that could start and sustain a bootstrapping model.
Of course, this would require some favorable terms from the leading EDA vendors so that you have access to their tools at a reasonable rate. It would be even better if the payment model was on some “shared outcome” model.
Xuropa would make a fine partner to support you in your SaaS efforts. We also have marketing tools to make your go-to-market plan very cost-effective.
Maybe this is something that the new GSA working group would look in to.
