http://www.thebiggertruth.com/2009/07/the-inverse-relationship-between-vc-invested-and-success/ Welcome to the bigger truth! I'll try to add some context around "how" or "why" things might mean more than meets the eye. Fri, 03 Feb 2012 06:42:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.thebiggertruth.com/2009/07/the-inverse-relationship-between-vc-invested-and-success/comment-page-1/#comment-10 Tom Petrocelli Mon, 13 Jul 2009 15:44:01 +0000 http://www.thebiggertruth.com/2009/07/the-inverse-relationship-between-vc-invested-and-success/#comment-10 I found while trying to raise startup capital or VC capital that VC's didn't want to fund small amounts. They make money on taking lower risk bets than we commonly think they do. When it's easy to raise money they take riskier bets. Harder to raise money and they get more conservative. A key problem is the lack of angel investors. Angels provide the high risk start up funding. They also assure that the business model is vetted earlier. Lack of angels means good start ups never get off the ground and some people are able to catch a trend or get luck early even for a business that is not sustainable over the long haul. I found while trying to raise startup capital or VC capital that VC’s didn’t want to fund small amounts. They make money on taking lower risk bets than we commonly think they do. When it’s easy to raise money they take riskier bets. Harder to raise money and they get more conservative.
A key problem is the lack of angel investors. Angels provide the high risk start up funding. They also assure that the business model is vetted earlier.
Lack of angels means good start ups never get off the ground and some people are able to catch a trend or get luck early even for a business that is not sustainable over the long haul.

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