I am convinced that being virtual is the best way to start a company. The benefits go beyond cost (although the culture of frugality can go a very long way). In our case, it improves the product. But generally it is more productive. When the bandwidth for collaboration is constrained at times, you gain a certain focus. And with wiki, you develop a group memory to draw upon as you go forward.
Technorati tags: telecommunting, startup, technology, real estate