That's twice the equity that the owners expected to give up just six months ago. Not all would-be entrepreneurs have caught on to the new reality. They come to us with such unbridled optimism about a startup. The marginal ideas don't get financed. It's a good taste of the dark side of the moon.
Venture capitalists share some of the blame for the inflated expectations.
If you have the money, you want to spend every damn dime of it. That sounds like great news for cash-hungry entrepreneurs.