From Yahoo, WSJ article on fewer start-ups

Fewer startups coming

 

Here's something that wasn't mentioned in the article.  Most of those start-ups fail.

Most start-ups fail, no matter when/where/who factors are invovled.

 

So the fact that there are fewer start-ups at all, can't really be seen as good or bad.  It's just a fact that exists.

 

Now start-ups also include franchises, restaurants, flower-shops, real-estate brokers, lawyers, dentists, etc.

 

In the VC world, these types of start-ups don't impact investors. They may hire a lot of labor, and represent the majority of the job loss.  But for high-tech start-ups the "fail early, fail cheaply" is very true.

 

Even with VC investments, most start-ups fail.  So I don't think a drop in start-ups that try for VC financing will affect the quality of deals, or number of deals seen too much.

 

Cash will continue to be king, especially as many VC funds close up shop.