To be honest, I've never heard of traditional sources of capital funding websites but I suppose that doesn't mean it doesn't happen.
In any case, I agree that it doesn't match the VC models, but I'm not sure there is another model available to a web business that can probably get enough traction to survive, but not enough to offer massive returns.
In fact, I'd go so far as to say there are probably significant market segments not being served because they offer a modicum of stable profit but have large up front costs without a lot of growth opportunity.
I wonder if this is an opportunity -- the world is not solely composed of moon-shot local social enterprise websites, and worthy businesses are being shut out of the world of cheap money by the prevailing culture. Hmm.
In any case, I agree that it doesn't match the VC models, but I'm not sure there is another model available to a web business that can probably get enough traction to survive, but not enough to offer massive returns.
In fact, I'd go so far as to say there are probably significant market segments not being served because they offer a modicum of stable profit but have large up front costs without a lot of growth opportunity.