Tim Oren points out that sometimes you need VC money. And I think that TypePad is a perfect example - because you need a hosted product to compete in today’s weblog market. I didn’t even consider Moveable Type when I was looking at weblog products because I was looking for a hosted service. And I have the skills to select a hosting plan, obtain a domain name, and install Moveable Type. If you can’t reach me, then who can you reach?
And hosting takes money. Nothing will kill a new service faster than poor responsiveness and lightning quick word of mouth. So you gotta have solid servers and you gotta have a big network pipe. And you gotta have the money.