Subject: RE: Successful FSBs
From: "Larry M. Augustin" <>
Date: Wed, 30 Oct 2002 09:00:35 -0800

> From: Tim O'Reilly []
> ...
> There's another important factor, which I picked up years ago from
> Davidow's book Building High Technology.  By definition, "dominating a
> market" means being more than 50% of the market, which means that your
> company has to be able to become half the size of the market as
quickly as
> the market gets there.
> This means, for disruptive technologies that are also commodities:
> * You are probably under the radar, so financing will be hard to come
> * Once you are no longer under the radar, competitors can easily jump

So again, financing will be hard to come by.

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

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.


Larry M. Augustin,
Tel: +1.415.276.5577, Fax: +1.650.966.1753