More start-up web entrepreneurs are realizing that they can bootstrap their new ventures and really don't need venture capital, according to a paper by Robert Hendershott in the next issue of the International Review of Entrepreneurship.
Writing about this new study in the New York Times, Claire Cain Miller notes that venture capitalists are beginning to adapt to this new reality:
(Thanks to Ben Cunningham for passing this along).
Writing about this new study in the New York Times, Claire Cain Miller notes that venture capitalists are beginning to adapt to this new reality:
[S]ome venture capitalists are tweaking the venture model to continue to take advantage of these new ideas, he writes. For example, Kleiner, Perkins, Caufield & Byers started the iFund to invest in iPhone application developers. Incubators like Y Combinator back very young companies. Union Square Ventures often invests less than $1 million in the first round of financing for just 5 percent to 12 percent of the company.What a great example of how markets work. No bailouts. No interventions. No targeted tax progrsm. The venture capitalists are adapted to the new market reality all on their own.
(Thanks to Ben Cunningham for passing this along).
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