Garage.com does not label itself as a venture capital firm. The firm acts as an intermediary, specializing in matching small, start-up ventures with investors. The company encourages prospective entrepreneurs to submit a business plan, which is reviewed by Garage.com's staff. If they like what they see, they seek more detailed information. All the research eventually leads to connecting start-ups to individual potential investors (Garage.com screens investors as well, making sure they can bring the kind of capital they claim). Since the companies funded are always in the seed stage, the investments are usually small, from $1 million to $5 million. Garage.com also purchases about a 5 percent stake in the companies it funds.

Similar to a real estate broker, Garage.com seeks a commission from the deal. The firm claims to have reviewed 10,000 preliminary applications. In 1999, they helped 40 companies obtain over $100 million in financing. According to Red Herring, Garage.com says it aims for a 5 percent commision on the venture proceeds.

Garage.com: venture capital's yenta

Focusing on seed-level financing isn't Garage.com's only distinguishing characteristic. Although the firm takes an active role in screening potential investments, it does not participate in the process of negotiation between investor and entrepreneur. In comments to The New York Post, Guy Kawasaki, one of the company's more high-profile founders, explains: "We're high tech yentas. We're not just matchmakers - we groom and strategize. If a company's ready for venture capital, they don't need us. We're the AAA farm team for the majors."

Garage.com became even more unique by filing for an IPO in February 2000. In the prospectus, Garage.com said they made $694,000 in profit on $5.9 million in revenue in 1999. Half of the revenue came from the fees Garage.com collects from both entrepreneurs and investors. The remaining half of the revenue resulted from the firm's conference for entrepreneurs, called "Bootcamp for Startups."

An evangelical founder: Guy Kawasaki

Since its October 1998 launch, Garage.com has created quite a stir in Silicon Valley and the national news media. The driving force behind the buzz is CEO and chairman Guy Kawasaki, 45. A graduate of Stanford and UCLA's Anderson School of Management, Kawasaki has authored seven books, writes for Forbes, and has won admiration - even worship - for his intense marketing efforts as Apple Computer's "Chief Evangelist" in the 1980s. Kawasaki has focused on developing his company's product, thereby boosting the profile of the Garage.com brand. To capture more of consumer "mindshare," the company's web site offers subscription e-mail lists and resource bulletin boards.

Others folks tinkering in the garage

The Garage.com management team boasts Silicon Valley heavy-hitters with impeccable entrepreneurial credentials. Co-founder Craig Johnson, a graduate of Yale University and Stanford Law School, defected in 1993 from Wilson, Sonsini, Goodrich & Rosati to form his own firm, Venture Law Group. Fellow co-founder Rich Karlgaard also attended Stanford, and founded Forbes ASAP and Upside magazines. President Bill Reichert, a graduate of Harvard and Stanford Business school, has co-founded several startups, including Academic Systems Corporation, in addition to working at McKinsey & Company and Brown Brothers Harriman & Co.