When is the best time to raise venture capital?

The notable $11 million investment in blog and web-site hosting company FreeWebs today made us scratch our head a bit. We wrote about the investment in our “wire” section (left-hand side of our homepage), and mentioned there are many competitors to FreeWebs, several of them quite large. Why would a company of a dozen or so employees, which managed to bootstrap it for so long (they went without funding for five years) and which is now profitable and has 11 million registered users, suddenly go out and raise a lot of cash. Why now? (href=”http://venturebeat.com/2006/09/08/when-is-the-best-time-to-raise-venture-capital/” target=”_blank”>Read More)