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In the world of venture capital, there was a time when a $10 million fund was considered small. Today, less than $50 million is considered miniscule.
This resizing has been driven by a dramatic increase in start-up financing needs, says John Huntz, managing director of Fuqua Ventures in Atlanta. "In the past, $3 million to $5 million would take the company through its first year. Now it's $20 million," he says. "Smaller funds have greater difficulty participating in big rounds of financing. They have to be much more collaborative. [The marketplace] is also forcing smaller funds to participate at an earlier stage."
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