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Non-Tech : The New Iomega '2000' Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: DeCoda who wrote (1750)	7/19/1999 9:43:00 AM
From: John Solder	Read Replies (2) \| Respond to of 5023

Castlewood funding: Any private company attempting to take their product mainstream needs deep pockets. Initial rounds of funding go into building prototypes and proof fo concept. Second round is much larger and is needed for product development and fabrication. Taking a product mainstream needs huge amounts of $$ to produce product in large numbers, provide cust support, handle returns and re-furbs and yes legal fees. If you are making drives and carts. your expenses are twice as high. If you are a private company the $$ is only coming from one place, private funding. Syquest had to give themselves away just to their product to market. Castlewood is having supply problems, that's an indication of cash shortage to get their stream running up to speed. Castlewood had plans to go public, but with the new Syquest/IOM lawsuits and cash shortages, I think that plan is on hold. They haven't been able to advertise properly, and it's not because word of mouth is their best advertising, they lack the $$$.