An article in the Wall Street Journal about a "cash crunch" for startups has thrown the tech world into a mini-panic.
Fred Wilson of Union Square Venture partners has the smartest take we've read so far, which is that the only reason there's a "crunch" is that there are now just a mind-boggling number of startups competing for a finite number of users and a finite amount of cash.
Good, differentiated startups are still able to raise all the money they want, Fred says. But he and his partners are now so deluged with business plans that he feels like the "Annie" casting director who spends all day fending off mothers and red-haired daughters at casting calls only to arrive home and have yet another red-haired kid pop out of a bush and start singing "Tomorrow!"
To read the full, original article click on this link: Fred Wilson Explains Why Most New Angel Investors Are About To Get A Seriously Rude Awakening
Author:Henry Blodget
