Capitalizing on connections – It’s who you know who knows who when it comes to raising capital

A year ago, Byron Sebastian quit his job at software maker BEA Systems to garden and learn the guitar.

That "vacation" lasted only months, or until he read an article about how Napster revolutionized the music industry. He wondered why the same phenomenon hadn’t occurred in technology, given the advent of open-source software that is distributed free.

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Still, as pocketbooks have loosened, the barriers to entry aren’t completely gone. A common theme among entrepreneurs raising money for a company’s first round is that they have a personal connection or foot in the door with a venture-capital firm.

By Tricia Duryee

Seattle Times technology reporter

Full Story: http://seattletimes.nwsource.com/html/businesstechnology/2002158845_venture24.html