A VC in Vacationland

Image via Wikipedia

In a word, yes, the model is dead.  That does not mean that loads of software start-ups will get millions in funding this year, run out an hire a CEO, development team, marketing & sales guys, lease office space, etc, ,etc.  And that may be the right model for many teams.  But it is not the new model.

The new model takes advantages of major changes in how software can be conceived, developed, hosted, marketed, sold and supported.

• The Big Idea–best developed while immersed in a problem, rather than tackled from afar.  Intrapreneurs, often working closely inside target customers on daily problems, can produce some of the most useful new technology.
• Development–innovative languages, open source software, which is increasingly sophisticated plus less expensive offshore software teams can accelerate time to beta and significantly reduce costs.  I have seen stealth software under beta development that will come in at less than $100K for a working version of a sophisticated solution.
• Marketing–uses B2B engagement marketing technologies, coupled with contract writers and outsourcing industry specific partnerships and social
  media like Facebook and Twitter, which provide free viral marketing platforms.
• Sales–co-sales, affiliated sales, network sales, partnering and outsourcing are all new strategies start-ups are using to drive faster, cheaper sales growth as opposed to just using traditional "sales guy" models.
• Hosting–not in the cloud?  You should be..cloud computing,
  which allows companies to outsource their entire IT infrastructure a minimal cost is the future of computing
• Support--wikis, on-line training

So, what's the point of gorilla picture? There's a first time for everything.  The female gorilla is using a stick to test water depths, proving that anyone can adapt to new ways of doing things.  If you are contemplating a software start-up, consider the above new ways of doing business as well.

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