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In those years I learned to properly build product, price products, sell products and serve customers. Raising capital remained difficult but possible and valuations were tied to underlying performance metrics and everybody accepted the the ultimate exit — whether through M&A or IPO — would also be based on some level of rational pricing.
With open source software (LAMP stack) and cloud computing infrastructure it just wasn’t that expensive to get your company going and founders just wanted to raise less money. Entrepreneurs want less cash because they want to control dilution and preserve exit options at lower prices. What exactly is seed funding anymore?
It was driven by the introduction of open-source software, most notably what was called the LAMP stack. That said, Amazon – through AWS – even without strong competition is as wonderful an experience as Amazon the eCommerce retailer feels to you as an online shopper. Open-Source Software & Horizontal Computing.
Even the most conservative companies began adopting the open-source LAMP stack (Linux, Apache, MySQL, and PHP) to dynamically create and maintain their websites. Pricing – Amazon’s pricing of the infrastructure that allows third parties to build their own private clouds and the old VMware/EMC/Cisco stack is cost prohibitive.
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