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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. If a VC term sheet comes in they begin their duediligence process. The contra is also true. What exactly is seed funding anymore?
There were startups and a software industry but barely. In those years I learned to properly build product, price products, sell products and serve customers. They wanted to build new products, solve problems that were unfilled by the last generation of software companies and grow revenue year-over-year while holding costs in check.
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