I agree. I recently presented at a local angel and VC conference. Many people believed in our idea, but we were asking for $500K. I already had a high profile company who had already signed an agreement to conduct a trial with us. The $500K was to be used for the trial as well as marketing. I got the same comments about traction, looking for later stage companies. At this point, I would rather take a loan out from a bank or arrange some creative funding than go to a VC again.
I think sometimes it really comes down to guts. We can all site and do the risk analysis on a good or bad investment, but a gut call has to be made in the end. I think for one reason or another most VC's have lost the mindset. It may also be the change in the environment. The dot bomb may have left serious psychological impediments that most VCs do not want to relive so they shy away from these investments even though it can provide sensational returns.
I think sometimes it really comes down to guts. We can all site and do the risk analysis on a good or bad investment, but a gut call has to be made in the end. I think for one reason or another most VC's have lost the mindset. It may also be the change in the environment. The dot bomb may have left serious psychological impediments that most VCs do not want to relive so they shy away from these investments even though it can provide sensational returns.