Today, The Boston Globe featured an article, In a city that plays it safe, incubator has a tough job on the coming Summer 2008 class of Y Combinator startups. YC operates out of Cambridge, MA, for the summer months. The article was more validation that east coast VCs still haven’t made a single investment in a YC company and that early stage ventures need to look at the west coast for funding:

But the problem is that of the 80 companies that have come through the program, not one has yet received money from a Massachusetts investor. “There have been three cases where a Boston VC was talking to one of our companies, and they had the sandwich ripped right out of their hands” by a West Coast investor, Graham says. “The Boston VCs were so slow and timid.”

Graham says that Boston venture capitalists prefer making “safe investments” in companies with experienced executives at the helm. As a result, he says, “They miss the Googles - the ones that have the really extreme returns.”