In the middle of a venture capital funding slump, you might think that early stage investments would be the hardest hit--VC dollars would be siphoned away from early-stage deals and poured into existing portfolio companies (conventionally Series B, C, D, etc. deals). In other words, money attracts money.
You'd have good reason for this belief. Overall venture capital investment funding levels are significantly lower on a year-over-year basis ($6.1B in Q3 2009 versus $7.2B in Q3 2008, according to ChubbyBrain). The absolute amount of money flowing to these early stage ventures is less than it has been.