A Musing Bean
Ruminations on all things

Why Micro VCs?

Sunday, 13 January 2008 04:20 by amusingbean

I don't understand why an entrepreneur would seek small amounts of VC money. "Micro-VCs" such as Y-Combinator claim to be able to kick start enterprises with as little as $10,000. If I were a smart entrepreneur who needed $10K to start my company, why would I trade valuable equity for such a paltry amount? Why not take a job at a big company for a year and save just as much? I mean, if I'm going to be paid less than my market salary for the 1-3 years it takes to launch a company (or not get paid at all), then why wouldn't I rather wait those few years and save instead?

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