An article in CIO.com talks about how VC dependency among startups has evolved to their democratization; a development wherein the cloud has played a major role in. This is because these days, they are given more options such as angels, accelerators, incubators and of course, cloud.
There is already a long list of on-demand services that help startup companies operate on a low budget. To name a few components that cloud use has proved to eliminate high costs:
- Development costs
- Long-term server lease
- System maintenance, management and security
Incorporating these in their operations meant offering lower costing services to end users, which makes the process of acquiring customers faster. The author mentioned though, that VC’s are still crucial in the early and latter stages of the development of these startups.
Read about how VC’s can still contribute to the growth or scaling up of startup companies at CIO.com and how slowly, the cloud is making these firms independent on VC funding.