Testing Time for the VCs

(3 of 3)

Until then, the lure of private equity may prove too hard to resist. "By the time the IPO has been written about in the Wall Street Journal, the real money has been made," says Gerald Benjamin, senior managing partner at International Capital Resources, which links angels with start-ups. In other words, if you give cash to a kid with another vague e-commerce business plan, don't be surprised if he burns it.