Subject: RE: Charging the Charger
From: "Anderson, Kelly" <>
Date: Wed, 18 May 2005 14:11:13 -0600

 Wed, 18 May 2005 14:11:13 -0600
If you can demonstrate a probable return of 10x on your money, then you
can usually get a VC to pay attention. If, on the other hand, you can
only realize a non-leveraged, "work an hour, get a dollar" approach,
then it is VERY difficult to get a VC to give you the time of day.

Support services are generally not highly leveraged, therefore, it is a
tougher sale to a venture capitalist, unless you have a business model
that demonstrates just how you will leverage support in some way.

Software VCs are used to the model of "work an hour, collect a residual
revenue stream". This leveraged approach is far more attractive, and far
harder to realize in an open source world.


-----Original Message-----
From: Gregory (Grisha) Trubetskoy [] 
Sent: Wednesday, May 18, 2005 2:01 PM
To: Anderson, Kelly
Subject: RE: Charging the Charger

On Wed, 18 May 2005, Anderson, Kelly wrote:

> If on the other hand, I say "Hey, I have this idea for software that 
> will change the way people do X, and it will save Y kinds of people N 
> dollars so that their ROI is 7 months, and there are 350,000 Y people 
> out there and here's how I can reach them. Oh, and here are my 
> projected financials." then I'm going to get the money if the numbers 
> work and are believable.

What if the I in the ROI above is money not for the software, but for
support of the software, while the software itself is free - are you
still going to get the money?


E-Mail messages may contain viruses, worms, or other malicious code. By reading the
message and opening any attachments, the recipient accepts full responsibility for taking
protective action against such code. Sender is not liable for any loss or damage arising
from this message.

The information in this e-mail is confidential and may be legally privileged. It is
intended solely for the addressee(s). Access to this e-mail by anyone else is unauthorized.