
Startups and the role of capital and investments - davidw
http://journal.dedasys.com/articles/2008/07/18/startups-and-the-role-of-capital-and-investments
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Tichy
I wonder about biotech: is the costlyness inherent in biotech, or has it been
brought about by legislation? No doubt some biotech projects are complicated
and take a lot of time, but perhaps not all of them? (There are also costly IT
projects).

I think there have often been opportunities to start small, that is why the
garage is so famous as a starting point. The garage founders where not
software developers, I suppose.

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davidw
Well, there is legislation in terms of drug discovery: you can't just give
people any old crap you concoct in a laboratory. But beyond that, even if
you're not working on medical projects, lab equipment is expensive stuff.

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Tichy
I thought there are also laws in terms of what equipment is required, like a
sealed off lab if you are dealing with bio agents?

I am still doubtful that equipment is in general the biggest cost factor.
Isn't wages always the most important factor? In that sense, doing an IT
startup is not so cheap either, at least counted in opportunity costs ("what
could I earn as a consultant instead").

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davidw
Yeah, wages factor in a lot too. Probably the most important thing is that it
takes a while to get something that you can sell to other people, so all the
equipment and wages have to be paid for up front.

