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How long to build a subscription based start-up company?

Just wondering if anyone has had success or failure in establishing a subscription based company.  For example, a user would pay $50-150 a month for access to a database providing specific business or legal analytics.  How long did it take you to build up a client base to bring in enough revenue to sustain the company?  Also, did you receive any VC funding, and are VC’s favorable to software-based ventures?

  • Google keywords are SaaS and software as a service. That’s exactly what the example is here. You will get much better results with the technical/VC lingo.

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  • 100% dependent on founder networks. If you have 4 founders who are all coders with great rolodexes of customers (ie came from the industry), then it can be 6-12 months before you get to breakeven.

    If you have no experience in the field, 2-3 years. I’m assuming 80% gross margin and overhead of like $300K/year, btw

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