Posted by christopher on August 7, 2012
[graphic courtesy of nystartuplab]
The incubator, accelerator, mentor, hackathon, seed fund, up all night business model of the NYC startup world is a challenging one.
Idea only driven entrepreneurs realize quickly that “construction” costs for a tech startup certainly rival those in the brick and mortar world. While the Pitch Deck merely requires a legacy copy of PowerPoint, the real world build out is challenging and expensive.
Seed funding and angels can take a project only so far. While some startups have tbe mixed blessing of having a youthfully maniacal CTO founder than can temporarily internalize many of the costs articulated in the above graphic, this scenario just delays the cash flow and burn rate issues facing startups in 2012. There is marketing, sales, public relations, testing, rent, 9 dollar sandwiches and 12 dollar cocktails, and a myriad of other expenses that will cross the founders’ collective paths.