[gravitycop]

VCs don't invest anything less than a crapload of money

A comic strip illustrates the point: http://www.thevc.com/strips/strip38.html

"C'mon folks, we need major cash outlays. [...] Work with me here, we're talking BILLION with a B..."

I think this could also be called an instance of perverse incentive. VC's have perverse incentive to invest more money than given startups need. http://en.wikipedia.org/wiki/Perverse_incentive