[looprecur]

No. First of all, a lot of startups still need to raise money. It may be cheaper now than in 1998 but it's still not cheap to pay 2-6 people for 6-24 months. And getting users and customers does not necessarily equal profitability.

What has actually happened in that there is a mismatch between investors and VC. In '98, many investors were MBAs who were willing to take VC investment on so-so terms because they wanted to eventually become VCs and they valued the connections. In '10, they want to take a lot less money (because they need less) on much better terms, and VC still hasn't adapted to that change.

But I cannot understate the value of having seasoned, risk-accepting, wanting-to-change-the-world investors and entrepreneurs. Silicon Valley has a singular advantage in this regard.