Simply put. VC is going to be hard in 2010

It is already hard in 2009.

Few funds are closing today at the level initially projected. I'm seeing junior level people being let go. No one is looking for associates today, too many fomer partner level people are available.

A failed partner has contacts, and experience that can be useful. The ones who were entrepreneurs before have the best chance of successfully starting another business. The ones who recieved their education and training via the financial analysis will have a harder time. The financial markets and industry are not the same today.

An investor who can't cut a check is pretty useless. Someone who is afraid for their jobs might be more conservative. Money is tight, and an investor feels no pressure to rush.

None of this bodes well for the entrepreneur.

And truth be told, many investors who are afraid today will not be around after the culling. The ones who succeed during this time will become the giants of tomorrow. However only time will tell if any actually succeeds instead of just survives.