More and more, entrepreneurs are turning to the web to start new businesses because of low startup costs — often less than $1 million. Investors are helping drive the trend, in part because they have less money to invest. The average venture fund has shrunk from $166 million in 2007 to just over $120 million at the end of last year, according to data from the National Venture Capital Association and SVB Capital. Smaller funds tend to gravitate toward smaller funding rounds.
But it wasn’t always this way. In 2005, when Jim Andelman and Brian Kelly co-founded Rincon Venture Partners to fund web-based businesses, VC were flush and funding the likes of Facebook.
To read the full, original article click on this link: Web Entrepreneurs: The 3 Things VCs Want From You Now | BNET
Author: Tim Beyers
