It's not just a problem in Silicon Valley. I recently ran a survey of my local startup community in Western NY and 47% of the software startups in the sample s

It's not just a problem in Silicon Valley. I recently ran a survey of my local startup community in Western NY and 47% of the software startups in the sample said that they intend to pursue venture capital financing in the next two years (with angel funding a distant second). It's likely that 99% of these startups are in for a rude awakening... Unfortunately, many of these startups blame it on our local funding environment (or lack thereof), which pales in comparison to SV. I blame it in-part on the startup media over-hyping the role of VC in financing an internet company. Many of these startups could turn into profitable small or medium-size businesses, yet they've been brainwashed into thinking VC is the only way to go. It's sad because they could boost our local economy if they chose to spend their time pursuing a more reasonable financing path that is better aligned with their business model and resources instead of wasting their time pursuing VC.