Agreed. I can't help but think that the article has an arrogant undertone to it. There are plenty of startups who do just fine without VC 'support'.
but i didn't mean it that way.
i'm just concerned that there isn't as much capital around to fund all of these companies in the follow on rounds
These small startups funded by their customers after 3 months to 1 year, after a year if they are not ramen profitable then it's generally end of the game. In the long term it gets bigger and in which case you are already big which means either someone is going to acquire you or you can fund yourself and keep getting bigger and bigger.
I understand that some startups need load of money and stuff but many don't.