Subject: Re: Successful FSBs
From: Adam Turoff <>
Date: Wed, 30 Oct 2002 12:20:23 -0500

On Wed, Oct 30, 2002 at 09:00:35AM -0800, Larry M. Augustin wrote:
> The bottom line for both of these is that financing is hard to come by
> for OSS companies.  I don't think that's a surprise to anyone on this
> list.  
> Maybe it means that FSBs need to look for financing means other than
> traditional venture capital.  It would be useful to understand what
> financing mechanisms are most open to FSBs.

Maybe it means that FSBs are not conducive to producing the Next Big Thing 
like Sun, Apple, eBay and Dell have.

That's neither good nor bad.  It just means that FSBs aren't naturally 
structured to return 100-fold ROI for their early investors.  It
also helps to explain why the talk of successful FSBs has focused
on small shops or companies like Amazon, Yahoo! or UUnet that aren't
software vendors but rely upon OSS for their business.