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?
Questions
How long to build a subscription based start-up company?
4 answers from the community
A· Mar 29, 2017
Lots and lots of answers on that Topic on Quora.com. Jason Lemkin says that you need to commit at least 24 months before getting initial traction.
https://www.saastr.com/if-youre-going-to-do-a-saas-start-up-you-have-to-give-it-24-months/
A· Mar 29, 2017
Great article. Thank you!
A· Apr 12, 2017
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.
A· Sep 14, 2017
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