Ask YC: Many small investors or few bigger investors

I am in the process of trying to put together my first round of funding. In order to launch I would like to raise $400k. What I am hearing is that $400k is a tough amount to raise: smaller than most VCs, but on the top end of Angels.

The good news is that I am getting some interest in the $20k - $50k range.

So, YC, what do you think? Is it crazy to try and piece together enough money from small investors or should I hold out for 1-3 larger funders?