“Venture capitalists have started pumping their remaining capital into hundreds of seed and early stage deals, looking for the next big thing. Dollars invested in these opportunities have already jumped from $893 MM to $1.49 billion between Q1 and Q2 of 2009, and there will be more increases in both Q3 and Q4. Early stage companies have strong prospects of raising significant capital in a “make it or break it” round. Venture capitalists are offering more cash up-front with fewer chances for follow-on investments. The average early stage deal size jumped from $4.1 million to $5.6 million in the first two quarters of 2009, and this number should increase to around $6 million for the remainder of the year.”
Change is in the air for venture capitalists | VentureBeat
Why the hell do you need $6 million dollars as your first early stage investment? Unless you’re building solar cells or bio-engineering plants, I don’t see it. (via caterpillarcowboy)
I don’t see it either. Why not invest that 6 million in 250 very small projects like mine instead of just one? VC firms should have thousands of teams in the minor leagues —working their assess off mostly just for the love of the game. When one hits a home run they can help subsidize the next round of teams. Or perhaps VCs do have such large numbers of active investments?
Found via caterpillarcowboy. 2 Notes. Permalink. Wed, Jul 22nd 2009, 2:50 PM (∞).
