What Will the Crisis Mean for Venture Capital?

It should be good for them.

IIRC Nassim Nicholas Taleb speaks of VC startups as good "Black Swans" {in contrast to the bad Black Swans visiting the mortgage market, stock exchanges, and financial investing in general today). He also compares bankers (who wear suits and ties) with Silicon Valley entrepreneurs and concludes that investment in the entrepreneur is safer. Aside: Taleb says not to trust any expert who wears a suit and tie. It sounds funny but he wasn't joking.

It's a good time to read "The Black Swan": it will help people re-align their investments and make better future judgements in their work and play.

"Many will turn to emerging markets such as India and China."

the smart firms and angels will realize that startups are still where the market is strong. 700 billion in bailout is going to be the ultimate "throw good money after bad" and it's going to be up to new ventures to fix the market after this downturn.

if there ever was a time to invest heavily and wisely, this would be it. not just to profit, but to repair morale and inspire confidence.