No, this is not an offer for you to buy my inexpensive guide to wealth and wisdom using WordPress …
Today’s New York Times Business section has a front page article titled, “For Start-Ups, Web Success On the Cheap.” It begins:
SAN FRANCISCO, Nov. 8 — When Seth J. Sternberg and two colleagues started Meebo, a Web-based instant-messaging service, they didn’t go looking for venture capitalists. Using their credit cards, they financed the company themselves to the tune of $2,000 apiece. It was enough to cover their biggest expense — leasing a few computer servers at $120 a month each.
Within a month of its introduction in September 2005, Meebo was getting as many as 50,000 log-ins a day, and it needed more servers. It decided to take a modest $100,000 from three angel investors, wealthy individuals who typically contribute small amounts but do not get involved in management decisions.
The article later says:
Several forces are allowing companies to operate cheaply compared with the first Internet boom. They include the declining costs of hardware and bandwidth, the wide availability of open-source software, and the ability to generate revenue through online ads.
Meebo is a web-messaging program that is supported by WordPress, and available to any WordPress blogger. I haven’t used it, but I have seen its name as one of the optional sidebar features.
This is just another sign that open-source is becoming a common signpost on the road to success.
The story also says that Meebo received about $3.5M in funding from Sequoia, a venture capital firm.
Sequoia is an interesting word. We’ll discuss it briefly in the next post.