Correct. 'real' startups (those you would read on techcrunch or hacker news about) are a small fraction. Most of them are 'internet moneymakers' in the wide sense, most don't need the investments, or operating in the grey area (like: arbitrage of porn traffic, various bots, etc), they basically just want interesting IT people to exchange ideas with. They still attract VCs wishing to prey on them whenever possible.