Many Internet companies attending a Web-business conference here earlier this month described venture money as “almost superfluous,” says Jason Pressman, a principal at Shasta Ventures in Menlo Park, Calif. Venture capitalists generally say their money and expertise are still needed to build large-scale businesses, and they don’t mind investing a little bit less in companies that have built businesses on the cheap but still want some venture money.
But some entrepreneurs believe the balance of power in Silicon Valley is shifting for at least a subset of Internet-focused start-ups. “There is magic in independence,” says Chris MacAskill, co-founder of online-photo site Smugmug Inc., which has no venture funding — and, according to Mr. MacAskill, doesn’t want any.