1. Early stage venture capital was an essential ingredient in Mint.com’s success. Yet only 2 to 4 percent of all venture capital goes to companies in the seed and start-up phases. Why?
2. Refer to question 2. Explain the advantages and disadvantages that entrepreneurs experience when they accept venture capital.

At age 25, Aaron Patzer held masters degrees in computer science and electrical engineering from Princeton and had a full-time job as a software engineer for an electronic design automation company. Like many young people, Patzer was creating a household budget and tracking his spending using one of the best-selling money management programs on the market, but he grew increasingly frustrated by its complexity, lack of flexibility, and inability to give him real-time information. “There’s got to be a better way to do this,” he recalls thinking. Convinced that he could create a money management tool that would be simple to use, Patzer, who says that his father read the Wall Street Journal to him as a toddler, quit his job and spent 14 hours a day for the next 7 months writing the software to drive Mint.com, an online financial planning Web site that allows users to create budgets, track their spending, and compare their spending habits to other people with similar lifestyles. In the early days, he financed the company out of his personal savings but realized that building a real business would take more cash than he had available.