Facing Downturn, Venture Capital Prunes Prospects

With lean times ahead, venture capital firms are turning to triagesupporting promising companies while shooting dead the weak

The credit crunch has scared America straight for at least a few quarters. This means consumers aren't buying, and corporations are putting spending on hold. As such, venture firms have been sowing panic among their portfolio companies, telling them to cut early and cut often. The resulting layoffs (BusinessWeek.com, 10/20/08) are already filtering through the startup ecosystem.

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