I want to clarify one point Ben. If you take a look at the VC market trends they all indicate that fewer early deals are happening, fewer focused early funds are around, if VCs actually raise money – they raise larger funds for later deals, etc. A lot of dollars flow into Southern California from the big guys because it makes sense to travel to make a $10mm investment. BUT – early dollars come from local investors. This is true everywhere. So, with early dollars drying up in Southern California, the question is whether or not we’ll have the sexy B and C rounds from these big out of town funds in a few years.

I’ve gotten a number of questions and emails about all this so I’ve posted additional thoughts and a link to our study on VC trends on our site (www.mvpartners.com/blog).

Thanks!