Tom Evslin write today about why it takes Web 2.0 companies more money to get started than the $2000 for Digg or the small initial investments to launch facebook or YouTube. Fractals of Change: Web 2.0 %u2013 Greater Initial Investments Required
So, if you’re just now starting up, don’t get blinded by the successes of the first people to realize a platform could be built and operated on the cheap. You already missed that wave. Now, unless you are extraordinarily lucky or well-connected, you aren’t going to succeed in publicizing your new service and getting up to a critical mass of content or subscribers or both unless you raise or have enough money to create initial awareness or value. There is too much clutter from which you must emerge.