Subject: Re: Free Software in Embedded Systems (was Re: Studies)
From: Peter Deutsch <peterd@Bunyip.Com>
Date: Wed, 17 Sep 1997 12:49:29 -0400

[ You wrote: ]
. . .
}    If I write free software, I don't see how I could ever
}    secure investment capital for software development unless
}    it was part of some larger strategy, such as using free
}    software as an enabler for embedded hardware.
} Well, that's one strategy.  Or, you could build a business supporting
} and maintaining free software, and you might get real investors in
} that way, if your business was good enough.  Or, you could use free
} software to gain market share, and sell a "pro" version of your
} product.  Some investors find this completely reasonable.

Traditionally, it is extremely difficult to find investors
for service-oriented companies (well, until they reach a
certain size. At that point you're not really investing in
a service company as such, but rather in its specific
methodologies and business practices. In effect, you're
buying a form of proprietary technology at that point).

We've been speaking with investors for Bunyip to allow us
to produce certain products and they've asked us to make
very clear in the business plan the differing sources of
funding for the services side of the company and the
funding for new products. They'd love to tap into our
revenue streams, but don't want to buy into a company
whose assets ride in elevators. There are exceptions, but
that's the rule.

					- peterd

     Peter Deutsch,                                   (514) 875-8611  (phone)
  Bunyip Information Systems Inc.                     (514) 875-8134  (fax)

  "I like flowers. I also like children, but I don't cut their heads off
   and stick them in bowls around the house..."
                                                   - Winston Churchill