This turned into a large, six-figure development project and his first client. His second big client signed on in November and another in January and Aaron now hopes to use the money from his fledgling consulting practice to internally finance the Internet entertainment business. Discussion after Schapiro s lecture on Activeworks revolved around the basic economics of an entrepreneurial start-up. However, the insights were unique. Schapiro stressed that his difficulty in raising funds was more a rule than an exception.
Many people use family money or money from independent consulting to fund their business.
Internet companies in particular are difficult to fund via venture capitalists because many of the firms specializing in high-tech funding are in San Francisco and weren t interested in a company in New York. Furthermore, tons of Internet content businesses had sprouted up planning to raise money via currently unprofitable banner ads. In response to one students query about barriers to competition, Schapiro confessed to having none. He hopes to be the first one who makes the best product and receives first mover advantage. To achieve this quality of product, Activeworks find editorial and design people and train them.