The Funding Gap

Everyone who understands the capital food chain for entrepreneurs is aware of the huge capital gap that has appeared in the past decade. Very little capital is available in the US for rounds of $1 million to $5 million. Angel investors have for decades funded deals of $200K to $1 million. Until the late ’90s, VCs funded round of funding from $2 million and up. But, for a variety of reasons, the minimum rounds size for most traditional VCs is now about $5 million. The gap is well-know and quite troubling.

Bill Payne

Full Story: http://billpayne.com/2010/11/16/the-funding-gap.html