Thanks paul. I think the most immediate answer is: improve the product and keep pumping out features. In the short-term our costs are really under control. I apologize if my initial thread sounded like I was shouting "fire" in a crowded theater. With the recession and downturn in the economic climate, startup logic (understandably) has shifted from the web 2.0/YCombinator preaching of: build, find users, get acquired or profit. The difficulty is that competitors in our space operate on this “free” model and are backed by substantial angel or VC money. In fact, the only widely visible startups that seem to still be operating under this logic were founded and funded pre-recession. What is going on here?

I’m somewhat confused by all the conflicting recommendations I get on early-stage startups. Again, cash is king and we have some ideas for monetization (which, of course requires more $).

In today's economic climate, can startups afford, literally, to avoid realizing a business model after you've scaled? I realize that YC has increased the number of seed investments, but has the angel community also increased the pace at which they invest in these fledgling ideas at the >$100k investment stage? I'm in Boston, so my perception is a little bit warped. Can someone offer their thoughts?