On the face of it, this just appears to be a possible end of the VC bubble. I highly doubt that this means much for startups that are built solely with founders' capital.
You need to distinguish between startups (people starting their own business), and "startups" (VC funded technology companies of a certain model). I'm sure the former won't be nearly as affected as the latter.
it was not just that there were startups which were feeding off of other startups. even big-name established companies e.g. sun, csco etc. were pretty deeply involved.