Speaking of, there's a number of start-up funding methods available to help, which includes small business and non-traditional loans. That allows you to build a reputation and network to go along with the "war chest" of start-up funding as well as getting a handle on the business aspects you may not be familiar with. Its a steep entry price, which is why many don't go private right out of school but work for others first. The cost of licensing and renewals is part of doing business, and your bidding needs to reflect that. Not all contracts are based solely on cost - offering to provide proof of legitimate licensing, being available for in-person/in-office meetings, and so on can provide those non-monetary incentives to pick you over others. Not as vindictive behavior but as you note its not good for the industry as a whole. If you are reasonably certain they were being truthful about using "cracked" software, report them to AutoDesk and/or related associations/professional organizations/etc.
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