It is really denotationally impossible for a start up to me a commodity. Come on folks, you are in business; you really need to stop mucking up the fundamental concepts of economics.

http://en.wikipedia.org/wiki/Commodity

(Don't tell me its a metaphor either, because it makes really terrible one.)

One reason he might need funding is to stay ahead of the competition. He has identified a good market, but now that the word is out, competition will emerge. And if he doesn't move fast enough he might lose his niche to faster competitors.

I love posts like this! Finally, case studies that make sense for this audience. Keep 'em coming.