http://venturebeat.disqus.com/News about Tech, Business and InnovationenMon, 13 Jul 2009 18:28:24 -0000http://deals.venturebeat.com/2009/07/13/vcs-raised-fewest-funds-in-q2-since-1996/#comment-12608152<p>VCs provide money for growth based on various metrics of "traction" (# users, # customers, revenue, etc.)</p><p>VCs do not provide money for creation or innovation - that is the role of Seed Funding.</p><p>Therefore, it is imperative that the Seed stage be strengthened so that companies have the means to achieve the necessary levels of traction demanded by various VCs.</p><p>The heavy lifting of the Seed stage is: sourcing, screening and oversight of the Seed companies and their entrepreneurs.</p><p>The problem does not lie with a broken VC model - the problem lies with providing entrepreneurs with access to Validation Partners and Seed Money.</p><p>The Seed Support problem cannot be solved by the current (and ever increasing) number of Drive By Mentor programs, Seed Summer Camps and Entrepreneur Reality Shows. If anything, these time limited, resource limited and oversight limited programs are cruel hoaxes in that they raise the hopes of the entrepreneur and provide no real answers or needed solutions.</p><p>VCs will invest.</p>elliottdahanMon, 13 Jul 2009 18:28:24 -0000