Hi Mark,

An additional factor to consider is the increasing role of angel investors and networks to fill the lower investment demands for seed and early-stage companies. I attended a recent SVASE event where the panel topic was - "Can you start a successful Web 2.0 company with less than $1 million?" These smaller funding amounts are not the focus on the traditional VCs. With the need for the big exits that come with biggest 1st and 2nd round funding by the traditional VCs, the current financial market is certainly impacting VC confidence levels. Angels tend to take a longer view and can afford a bit of patience not afforded to VCs.