(Entrepreneur) — The venture capital community has an image problem. That’s right. Most people think venture capital is just for high-tech startups, but it turns out that way of thinking is so very last century.
The real deal is that only a small percentage of private equity (institutional fund investments in mostly privately held businesses) goes to “seed stage” startup entrepreneurs.
Busting VC myths
According to Thomson Reuters, the amount of funds that go to startups is consistently below 10 percent. “Early stage” companies, or businesses that require funds to fully commercialize their products or services, receive about 18 to 25 percent of invested capital.