Read Dan Lyons brilliant article Let’s All Shed Tears For The Crappy Startups That Can’t Raise Any More Money on ReadWriteWeb
Excerpts:
Startup Ecosystems

It’s wannabe journalists writing about wannabe investors giving money to wannabe entrepreneurs and everyone in the circle jerk believing that the whole thing makes perfect sense because, trust us.

On the bubble

But if that’s the case, doesn’t it mean that we were in fact in a bubble back when all those blogs were saying there was no bubble? Apparently the answer is, No, that wasn’t a bubble. That was just frothy.

On Entrepreneurs

The great lie of these last few years is that anyone can be a tech entrepreneur. You don’t need to know electrical engineering or computer science. You don’t need to know anything about business. You just need a positive outlook and an ability to speak confidently while saying things that make little or no sense.

On Angel Investors

Maybe the angel investors and cheerleaders will feel guilty for having wasted so many people’s time and energy and resources that could have been used for something good. Maybe they’ll realize that easy money isn’t the solution – it’s part of the problem.
Maybe all the angels will simply get sufficiently butt-hurt on these lousy deals there won’t be enough of them around to mislead thousands of other kids into creating another one of these seed-round bubbles, or whatever you want to call what’s happened. Maybe we’ll all buckle down and start trying to solve big, important problems.