ShaneMcLean.com

Information on legal and business topics from Canadian business lawyer Shane McLean

Bright Side of Life Part II

Posted by Shane McLean on April 24, 2009

Originally Posted on www.StartupOttawa.com on  January 30, 2009.

Bright Side of Life #2:  Maybe we don’t need as much money as we used to –The design and manufacture of certain products and the provision of certain services will be as costly as ever, but in many areas new forms of production and service delivery (think open and more collaborative models) are often not as capital intensive and if you go truly open and make it compelling people might even pitch in for free.  Maybe the need for millions of dollars from a Venture Capitalist is not as pressing in some of these models (at least not initially anyway) and entrepreneurs can get by for longer by bootstrapping and pulling funds from other traditional and not so traditional sources to allow businesses to mature longer before needing to get a pile of money in from a major investor (if ever).  This is good for an entrepreneur community facing investors that often seem to be out of money or keeping their money close and good for those businesses and founders who can manage it.  By waiting until their companies are at a more mature stage before seeking investment they should command higher valuations and have to offer less equity for more money.

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