Testing Time for the VCs

Seduced by soaring IPOs, VC wannabes are flooding the market. But as veterans are learning, the days of easy money are over

A double major in neuroscience and computer science would keep most college kids pretty busy. But when Yale junior Joshua Newman, 20, scampered across campus this spring, he wasn't thinking too much about finals. He was more concerned with raising $10 million by the fall--and then giving it away. A native of (where else?) Palo Alto, Calif., Newman just happens to be a budding venture capitalist, one of the early-stage investors who fund high-tech ventures before they go public, in exchange for a potentially lucrative stake. His fledgling fund, Paradigm Blue, plans to give about $500,000 to promising dorm-room start-ups that...

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