Startups In The Cloud Era – Things Have Changed

Grazed from CloudTweaks. Author: Omni Erel.

There are numerous startups of all varieties of purpose and goals. We have seen great successes and great failures. We have seen a lot of money being made on fabulous exits, but also seen a lot of money lost as well. Things are changing for startups, and in turn, they are changing for investors as well. What affects how startups must work affects how investors must forecast chances of success, and which ponies they want to back.

Of course, with progress, change is inevitable and ubiquitous, but the past couple of years have seen the steepest change in this industry’s history. What is this culprit? Cloud computing. To appreciate the change, and what aspects it is wrought upon, let’s first talk for a minute about the classic challenges faced by startups…

First, of course, is the venture capital issue. This is really why investors exist, but startups can’t solve some of the initial monetary issues they face before approaching investors. Many investors won’t even consider investing in someone with no early demonstrable prototype of some sort. Sadly for startups, that requires some money to achieve 9 out of 10 times, and for that step, they are unfortunately on their own…

Read more from the source @ http://www.cloudtweaks.com/2013/02/startups-in-the-cloud-era-things-have-changed/