Startups and the Penny Gap

Great post from Josh Kopelman on startups and the “penny gap”:

The truth is, scaling from $5 to $50 million is not the toughest part of a new venture – it’s getting your users to pay you anything at all. The biggest gap in any venture is that between a service that is free and one that costs a penny.

Speaking of Josh, I like the following figure of his on the “new” cheaper funding cycle in online media companies:

Related posts:

  1. Google is Running Penny Stock Promotions
  2. Juniper Demurs on Playing Beat the Analyst
  3. GSpreadsheets: I Don’t Get It
  4. The No-Ringtone Rule for Pitching Wireless Startups
  5. Starting Stealthy Seattle Startups by the Seashore


  1. Mark Kraft says:

    I should also clarify that you want to give away as much functionality for free as you can reasonably afford, or it won’t be viral.