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The Capital Gap is Shrinking (weatherby.net)
1 point by mattculbreth on Oct 16, 2007 | hide | past | favorite | 8 comments



All the numbers in the presentation he links to (http://www.peachseedz.com/peachseedz/2007/10/stuck-in-the-ca...) are wrong by about 2x.

Also, there's somewhat of an omission in the "pre-seed" column. Anyone notice? The original presenter is either completely out of touch with startup funding, or paying us the compliment of counting us as "friends" of startups.


The numbers are meant to be general, not absolute. Note that I put "depending on region" as a disclaimer for some folks who "might" object. Out of touch with start-up funding? Ouch. we've been at it for 8 years.... Primariy point is to show that there "is" a gap. Be it the Atlanta, Boston, SV, Ft. Wayne, Charelston, etc. Angels and angel groups have different models. So, don't judge many by the actions of a few that you are familiar with. Angels individually invest $25,000-$100,000. But as a group, can do $250,000- $1M plus(rare). Knox Massey


They are not my numbers so I don't want to defend them, but I think that what we are seeing is some of the differences in "localness" in angel markets. Knox's group mostly invests in enterprise software plays which are a bit more capital intensive then web apps.

Of course you are a "friend" of startups.:)


In which direction do you think they're off? Are the numbers too big or too small in your opinion?

As for YC, yeah I don't think you are in the original chart. As you've said before that's kind of a new category. Seed I guess, but so early and so much smaller than what people usually think of as seed. What's interesting though is that some of the people involved in these posts are considering a YC-ish type thing in the Atlanta area.


They're too big. Angels are willing to invest $50k, and VCs will now invest as little as $1m. There is a bit of a gap, but it is around $300-800k.


And even then, some angels invest in that range. Peter Thiel, for example.


Gotcha, thanks. I'm right in this range right now and I'm speaking to both Boston- and southeastern-based investors. We'll see if we run into the gap.


Could be that the data is from an Atlanta group. I imagine they're not as heavily-weighted towards web startups. Out in the boonies startups are more of the consulting/product variety.




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