And why other dev shops stay small and don't scale beyond a point? I'm trying to figure out the "secret sauce" here.<p>Everyone says services based agency business won't scale. And here is Gigster. Got into YC, raised $30M and growing!<p>Did anyone of you figure out the "secret sauce" behind the success of Gigster?
As far as I read about them, their model is not similar to a typical dev shop.<p>The main constrain that hinders the exponential growth of a dev shop is it's revenue - operational cost ratio. As your revenue increases, operational cost increases linearly. That is not something loved by VCs.<p>But Gigster executes projects using their freelance talent network. So they don't have to keep them in their payroll when there is no work for them.<p>This information is based on what I read about them. I'm not sure how smooth it will be to execute a software development with a team of freelancers though.<p>But if it works, then I think Gigster's model can achieve exponential growth.