VC investors discovering small can be beautiful

September 17, 2007

Jon Radoff, founder and CEO of GuildCafe, says small amounts of funding can set the stage for future VC investments. View Larger

Bigger isn't always better, especially when you're an entrepreneur trying to raise just enough money to get your idea off the ground.

In the past, seeking smaller seed dollars -- say, below the $3 million mark -- from Greater Boston's big name venture capital firms was a tough row. As firms grew and became loaded with larger sums of money to invest, it became harder for them to justify deals that were under $5 million. But recently, with the cost of starting certain technology centered businesses dropping, many VCs are singing a different tune, quietly handing out smaller rounds of cash as small as $75,000.

Boston Business Journal by Jesse Noyes Journal staff

Full Story: http://boston.bizjournals.com/boston/stories/2007/09/17/story3.html?b=1190001600^1520422