FT Start-Up Stories Episode 2 - Funding
Nov 2, 2015
Andy Harter, founder of RealVNC, discusses how he used an early form of crowdfunding to launch his remote control software company, engaging fans for seed capital. He shares insights into innovative funding strategies, including a freemium model and merchandise sales that enhanced user loyalty. The conversation critiques traditional funding approaches, highlighting high failure rates of VC-backed firms and the benefits of customer-funded models. Harter's story challenges industry norms and showcases the potential of alternative funding options.
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Giving Software Away Grew The Market
- Andy Harter gave away VNC as free GPL software in 1998 and watched downloads grow from hundreds to hundreds of thousands globally.
- He estimates about 2 billion copies of VNC and related software exist worldwide.
Match Funding To Development Needs
- Plan funding to match your product roadmap and needed team size rather than assuming VC is required.
- Consider government grants, European projects and customer-funded routes to support two years of development.
Investors Can Redirect Your Timetable
- Taking external venture capital can impose an investor's timetable that may conflict with long-term plans.
- Growing organically lets founders control pace and priorities without external pressure.