Internet startups snub VC dollars
There was an interesting article by Adrienne Sanders in the March 10, 2006 issue of San Francisco Business Times entitled "Internet startups snub VC dollars" which was mostly about smaller Internet startups which have been able to sell out to established, larger companies without the need to raise money from the professional venture capital funds.
I would simply make the point that there are a wide variety of funding needs and that it has never been true that one size fits all. Some startups can completely fund themselves. That's great. Some really do need some angel funding and guidance. That's fine too. And, some startups really can do better with serious, deep-pocket, professional venture capital funding. Sure, some startups will do better by selling out to established companies as quickly as possible (known as "flipping"), but some (e.g., Microsoft and Google) really will do better as "built to last" ventures.
The point is that the entrepreneur should be cognizant of where they are really trying to go with their venture. In other words, Entrepreneur, know thyself.
Note: The article also appeared on March 12, 2006 on MSNBC.com.