Subject: Re: How to pay for initially developing free software
From: Michael Tiemann <tiemann@cygnus.com>
Date: Tue, 10 Mar 1998 09:20:29 -0800

    I can't comment on the situation in Silicon valley these days where a 
    good idea and a business plan but without code, customers, or 
    cash-flow,  can still raise millions of venture capital.  This is a 
    relatively new model that (I think we can all agree) is not 
    compatible with funding free software development.

It's a new model that's not consistent with making a reasonable ROI,
either.  In the '80s, people with too much money blew it on cocaine.  In
the '90s, it's random VC investments.  When the excess cash burns itself
out, we'll see a return to fundamentals, and strong, profitable
businesses will once again find favor with bankers and investors.

Michael