No. First of all, SV doesn't depend only on investors. All the support for startups is here, from lawyers to graphic design to (probably most important) other founders.
Second, not taking VC doesn't mean not taking investment. If startups downshift, the next lower gear is angels.
Re:Could VC be a Casualty of the Recession?
by BerislavLopac on Saturday December 06, 2008 @05:16PM
(#388419)
What if angels are few and far between, and those that are there lack any experience about angel investing?
1) your thesis is correct, and,
2) that a good startup hub is created primarily though the availability of investors (as observed in the essay "The Hacker's Guide to Investors"),
Don't these two things imply that Silicon Valley's prominence as a startup hub will wane?