Although record sums of venture capital were invested in early-stage companies in the United States last year, in reality it is very difficult to raise money this way. This is particularly true for life-science and physics-based start-ups, where money is available on only a highly selective basis. "Venture capital has a very useful but specific role, and unless you fit that set of screening criteria you're not an option," says David Gibson, president of X-ray Optical Systems (see box overleaf). He says venture capitalists are often reluctant to invest smaller amounts of money in very early- stage ventures, because it can take as much time and effort to invest $ 100,000 as to invest $ 10 million.
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