(FORTUNE Small Business) – A recent survey by the National Venture Capital Association confirmed the obvious: VC investment continued its decline in 2003, dropping to $18.8 billion from $21.6 billion in 2002. What is less known is that startup investment from informal investors—friends, family, and founders—is up $4 billion (to $108 billion) in 2003 from the year prior, according to a report from the Kauffman Foundation. In other words, fewer entrepreneurs are counting on the kindness of strangers. — I.M.