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Why do mobile startups cost so much?

• I am interested in developing an app and creating a startup around it.  I have been researching costs for such mobile startups on Quora for some time now and there are several breakdowns for cost based on developer cost, cost of hosting/domain/maintenance, scalability, etc.  Without even discussing client acquisition or marketing, people are estimating costs upwards of 100k+ for an app and its surrounding infrastructure - even for a Minimum Viable Product. I thought up an idea for an app a few weeks ago which will receive Bluetooth signals from a physical device and display the data in the app and SaaS-type dashboard web service.  On the phone it will be stored locally using sqlite, otherwise the information will be stored using some sort of cloud DB when the app is connected (mysql for now but this can easily be changed .  I wanted to put something together as fast as possible so I: 1) used phonegap/cordova 2) found a well designed template on github which has a free-use license 3) used free chart JS libraries (xcharts) to develop the graphs 4) used free libraries to connect the app for bluetooth and for seamless database interaction A test version of my app is running pretty well on my phone right now (legitimately after just a few days on the computer).  It might have some hacky css and js, which i will go back and fix, but it has no major speed problems that I can tell.  Even if I scrap this and apply the same approach more conscientiously, perhaps incorporating more standardization so i can reuse the parts in the web service, i can develop something clean and pretty in a few weeks using just HTML/JS/CSS. I ask this question not to be facetious but because I legitimately do not understand why my approach is wrong.  Yes, I have some (highly informal) experience in JS/HTML/PHP/MYSQL, and have taught myself a bit about obj-c.  Yet, I assert that I used tools which i could have taught myself proficiency in online in a matter days - Especially given the extensive availability of libraries, help, documentation, tutorials, OS templates/platforms.  My only thought was that people are perhaps getting capital as Kenny says and are instantly hiring teams of 50 developers. But even then, what do these developers work on? Is scalability the name of the game?  If so, what would cause an app like mine to fail if say 10k users were making requests everyday (as this is the only place where there could be major efficiency problems - not much social element to the app beyond that)?

• Answer:

  VC money is really cheap thanks to the record low interest rate (Quantitative Easing). As a result they are tons of VC $$$ ready for anything hot and at the moment mobile is red hot. This is triggering high level of competition for any available mobile developer/designer/REST developers. This means you need higher operating cost or burn rate.