'... If VCs and angels start competing with each other, there must be a decent-sized market of startups with considerable potential ...'
My take is the market is re-adjusting. YC has now shown that the cost to get startups to market is low and therefore the average & not so average VC's who want to give more money out than startups need, have begun to adapt giving less. [0] I'm seeing adaption in the developers tool market as well. [1] Big business is catching up.
'... More power to the little guys with big aspirations! ...'
It demonstrates that the money bit is not the real stumbling block.
My take is the market is re-adjusting. YC has now shown that the cost to get startups to market is low and therefore the average & not so average VC's who want to give more money out than startups need, have begun to adapt giving less. [0] I'm seeing adaption in the developers tool market as well. [1] Big business is catching up.
'... More power to the little guys with big aspirations! ...'
It demonstrates that the money bit is not the real stumbling block.
Reference
[0] pg, 'The Venture Capital Squeeze'
http://www.paulgraham.com/vcsqueeze.html
[1] bootload, 'Delphi on Rails?'
http://news.ycombinator.com/comments?id=8494