What do these startups need so much money for?
inerte: 10 people making 80k per year, that's a million dollars already. Now add taxes.If you think VCs are interested in companies that won't need 10 people to run their business, ever... you're thinking to small :) And not only there are your employees, but imagine hiring accountants, lawyers, cleaning staff... the list, only with actual human beings, is already huge!Now add costs like transportation, hotels, food, all the furniture, the stuff you need just to have the office open, like electricity and water and... fumigation? Ad on Techcrunch? 20k for 2 months. NY Times front page on Sundays? 100k. And let's not even mention prime-time TV... It just costs a lot of money to have a big business running.Open a spreadsheet anyday and do some calculations. I've only skimmed some of the costs with my examples here (even though I am sure someone will comment how NY Times ads don't apply to your question).