In my opinion, finding VC funding isn't a bigger problem than it was in the past few months just because lots of things are quarantined. The bigger issue to me is if their employees need to work from home, have they prepared the infrastructure for it? They are small startups so they likely did not have time to consider this possibility, and it hit them abruptly all of a sudden at the wrong time. That might make a small hole in their VC money which they will need to compensate for by slashing other areas they could've innovate in to save costs.
Assuming free VPN software, devices for say 10 people amounts to about $10K, two VPS servers or three brings will burn something like $5K. You may also have to cover broadband for video conferencing but that shouldn't be a big deal since you can pay $50/month for each person for an unmetered connection. Do they have this much in cash available to spend?
I think you may have misunderstood. A lean-agile startup. Many cases will see founders and team members working remotely. Reducing any possible operational overhead costs to a minimum.
Regarding hardware three VPS servers wouldn't be needed. Simplicity is in the complexity of the programming provided by technology providers. Resulting in services made available in remote areas.
I am open to discussion if you would like to continue this conversation on the topic.
What did you mean as I may have misunderstood but after you read my reply please get in touch so I can understand.
Thanks for replying, I was trying to say that remote working infrastructure might be a large part of startup's operational costs.
I think you may have misunderstood. A lean-agile startup. In many cases will see founders and team members working remotely. Reducing any possible operational overhead costs to a minimum.
Yeah, I definitely missed that part ☺️. I haven't followed remote startups much so there are a quite a few things I'm not aware of. So is remote working "baked" in such companies business model, and costs incurred by it are manageable?
In my opinion, finding VC funding isn't a bigger problem than it was in the past few months just because lots of things are quarantined. The bigger issue to me is if their employees need to work from home, have they prepared the infrastructure for it? They are small startups so they likely did not have time to consider this possibility, and it hit them abruptly all of a sudden at the wrong time. That might make a small hole in their VC money which they will need to compensate for by slashing other areas they could've innovate in to save costs.
Assuming free VPN software, devices for say 10 people amounts to about $10K, two VPS servers or three brings will burn something like $5K. You may also have to cover broadband for video conferencing but that shouldn't be a big deal since you can pay $50/month for each person for an unmetered connection. Do they have this much in cash available to spend?
I think you may have misunderstood. A lean-agile startup. Many cases will see founders and team members working remotely. Reducing any possible operational overhead costs to a minimum.
Regarding hardware three VPS servers wouldn't be needed. Simplicity is in the complexity of the programming provided by technology providers. Resulting in services made available in remote areas.
I am open to discussion if you would like to continue this conversation on the topic.
What did you mean as I may have misunderstood but after you read my reply please get in touch so I can understand.
Thanks for replying, I was trying to say that remote working infrastructure might be a large part of startup's operational costs.
Yeah, I definitely missed that part ☺️. I haven't followed remote startups much so there are a quite a few things I'm not aware of. So is remote working "baked" in such companies business model, and costs incurred by it are manageable?
Well the idea is to reduce operational cost and maximise organic growth.