Why do startups need all that funding money? It is just for advertising?

Re:Why do startups need all that funding money? It is just f... by e1ven on Wednesday November 21, 2007 @03:28PM (#82565)

Legal fees are a big one, I'd imagine. Also paying for artwork, servers, and services to monitor the service for if it fails.. Then there's bandwidth, which is always expensive.

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Re:Why do startups need all that funding money? It is just f... by nickb on Wednesday November 21, 2007 @07:31PM (#82621)

> Then there's bandwidth, which is always expensive.

It's not. You can get a TB for about $25-30.

Like others said, biggest expense is almost always the salaries for employees.

Legal fees are a one time fee and unless you're doing a VC round, incorporation and all agreements can be had for under $1K. If you are doing a VC round, well, then you can afford the $50K legal bill.

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Re:Why do startups need all that funding money? It is just f... by e1ven on Sunday November 25, 2007 @04:58PM (#83399)

It depends on if you're bringing it in house, or renting a server someplace.

I've found that if you are renting a dedicated server, you can get insane bandwidth deals, but if you try to bring it in-house, or even colo, you get burned. The dedicated hosts aren't expecting that you actually use the allocated bandwidth- This is why they'll give you 1000GB for the standard cost, but charge $100 extra to bring it to 1200GB.. If you need to bump it, it shows you're actually using it.

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