Do VC’s consider smaller investments?

It is common knowledge that traditional VCs don’t get out of bed for less than a million in investment. However there is a new breed of VC considering relatively small investments of the usual Angel variety.

With the increasingly lowering of barriers to entry and relative ease of bringing a business to mass exposure, the whole VC industry is rethinking their approach to investment. Of course there will still be market for high level investments for the big gun VCs but we all know the real money is made in getting in early with startups and small businesses with high growth potential.

Leading the way for small, early stage venturing is YCombinator, a VC backed initiative which supports early stage technology companies with resources and initial development funding. Another very exciting VC development is that of SoftTech VC who have raised a $12m fund purely to invest in early stage startups. Another notable VC investing in early seed stage startups is Charles River Ventures with their CRV QuickStart programme.

I think this move towards smaller VC funding is very encouraging and will mean that a lot more startups get that early stage seed funding they need to get their ideas off the ground. Of course until the rest of the VC industry re clarifies it’s expectations there are still plenty of Angel Investors out there looking to invest in your seed stage business.