Interesting article at the NY Times about the changing world of VC funding for Web 2.0 startups. Meebo supposedly began with several grand on credit cards for hosting space, eschewing big VC investments until later. This makes sense, as costs to getting a web site up and running have plummeted.

Anyhow, the article highlights something I admire about many Web 2.0 startups: their relative frugality, especially compared to the Web 1.0 tendency to blow millions on marketing in the form of expensive Super Bowl spots and giving away everything for free, losing scads of money in the process. Or, hiring everybody under the sun because a .com had to expand just for the sake of “first-mover-advantage” over the also-expanding competition. Nowadays, a handful of people can create a compelling website.

Of course, I’m coming from the perspective of a consumer, or end-user. I’m interested in sites created by passionate people who really believe in what they’re doing: not just a ploy to latch onto the “next big thing” and make a pile of money. So it’s refreshing to discover really fun and useful websites made by people who aren’t primarily motivated by money.

I feel my point of view is more valid than ever before, since many Web 2.0 sites are of the “social website” vein, and count on users like myself as part of their business models. My point is, Web 2.0 frugality is more than just saving precious cash: it’s demonstrating to the potential audience that you really care about the product you’re building - not just the cash you may receive after it’s built.

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