I have to disagree with the OP. I think that valuations are going to decline with the bad economy. 1. Most pre-funding startup founders and employees are worki

I have to disagree with the OP. I think that valuations are going to decline with the bad economy. 1. Most pre-funding startup founders and employees are working for deferred cash and equity, which means that they need to subsist on savings or parental generosity for living expenses, health insurance, etc. Those sources are likely to dry up for some people, which increases the urgency of the funding problem. 2. It's going to get harder for a lot of startups to become "ramen profitable", to use Paul Graham's terminology. Valuations will decline because VCs have more leverage, and therefore can get away with weaker offers.