Consensus on outsourced infrastructure

With outsourced processing and storage (Amazon S3 and EC2, Google App Engine) getting cheaper by the day, IT startups have a lot going for them. Low startup capital for one.

The question is, will that shrink VC capital available to startups? Not likely seems to be the consensus.

Ask me. I would settle for less certainly. Just what I need to feed my staff, some essential marketing spend and early customer visits. Go for everything that helps dilute less and less stake. Any day. I have Ed Roberts, founder and chair of MIT Entrepreneurship Center for company who says "More startups may, however, get funded by angels or angel groups who have less money than the venture capitalists".

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