$4 bln of venture money invested in software startups

IT Facts

Newsteam | ITFacts [] | POSTED: 06.04.04 @03:50

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While I believe that the facts are accurate they fly in the face of what small companies having been telling us on the capital provider side of the table. As investors we look more like private equity than venture money -- so we typically are backing software companies that have hit the $10M in revenue threshold. It's been slim pickings since the bubble burst, because we need early stage investors to get companies along to our stage of investment. Start-ups still believe that it is much harder to get investor dollars than in the bubble/pre-bubble years (at least that is what they tell us). Whisper-stream says that some bigger funds are struggling to get dollars invested - why might explain some of the growth in dollar amounts being invested. It costs more to get a company to the $10M mark (especially hardware/chip plays) which probably also leads to the larger dollars being invested. I'd also hazard a guess that there are more companies sprouting up looking for money.