>We just need to buckle down, be cheap, creative and survive. Get to revenues quickly.

I think that's what the article is saying.

thats the problem isn't it? Almost all of these venture backed startups have been pissing money away left and right. This credit crunch won't affect those startups that are self funded. The only ones that'll be affected are those with huge staffs which they can't afford in the first place

Just because your startup is self funded doesn't mean you won't be impacted.

* If you charge money for a product and your customers are no longer willing to spend money, you're in trouble.

* If you rely on advertising for revenue and companies reduce their ad spending, you're in trouble.

* If you're hoping to get acquired and your potential acquirers are no longer able to spend money because of plummeting stock prices, you're in trouble.

the difference is that a small team startup has to make a lot less revenue to survive. A big new startup on the other hand would have a few million a year just in salary expenses.

Credit crunch takes out financing, not just investment. And the current deep recession, or even depression, will destroy income.

It's not that easy.

> The big Web 2.0 blockbusters all started up with things were down.

Not to contradict your general point, but it's probably unwise to compare now with 2001/2002. That was not even close to a real recession. It ended with higher consumer spending than at the start. This time around consumption will plummet, possibly for years.

Will is a strong word for so early.

Exactly. Enough already with the shadenfreuder. You get the sense that they're enjoying all the doom-saying.