> Not exactly true. A startup in Silicon Valley can actually use $5-10 > million in a first round of funding. A startup in India doesn't need > that kind of money in the first round, especially if we are talking > about a company whose output is software. The kind of money an > average Indian VC raises for its fund, is, however, comparable to its > Valley counterpart (in the same order of magnitude, whereas the > funding required in series A differs by an order of magnitude)
Well, this has been a very common issue amongst VC's (atleast what I get from their blogs) about how the barrier to entry is so low that very few companies require multi-million dollar investment early on. So the startups that "can" use the $5-10 million in a first round still exist but the ones that need only $100-500k are showing up in greater numbers. Both in US and India. - Vinit
