I’d be interested in comments here as some conversation around the office was regarding how much it takes to start a product-based software startup. This is interesting to me because I’ve hired three software developers during my time in Mac-Sys and Infurious had at least one software developer in-house.
Our estimate was a development team of 3-4 people for a minimum of two years would mean probably half a million pounds when you add travel, marketing, overheads.
This assumption was based on 4 people (presumably 3 developers, 1 designer), earning mid-range to low-end salaries (£25,000 per annum) probably because they have some sort of equity stake.
This is assuming you’re not a service company – you’re not paying salaries by doing development for other people.
And then there’s the assumption that it’ll take you a year to build it and the second year you’re building product #2 and supporting product #1 with bug fixes and updates.