Do Web Entrepreneurs Still Need Venture Capitalists?

One of the green stories of HN hits the mainstream media.

Their answer is no, we don't need vc's and angels anymore.

When saying this on HN your karma will be heavily dropped ... I would like to know the latest opinion of YC about this issue.

Since it is very cheap to start a web business, and since there is no more marketing as usual in this segment (a good idea hits the mainstream immediately) how angel investors see their future?

To start providing a service with a clear strategy to monetize? Not really. Bootstrapping is a matter of saving enough money to have sufficient ramen noodles and rent checks.

To create a phenomenon like facebook or twitter with no obvious way to monetize? Sure, you still need angels/VC.

Were there really people chasing VC for iphone apps, or is this article pointing out the death of something that never really lived?

Yes, to help me go from where I am to where I want to be.

Without solid financial backing, at least enough to take care of your team, you will be forced to evangelize your vision and rally support with nothing but sheer will power. If I had salaries for 2-3 people I wouldn't need to spend half my day being a motivational speaker; I prefer to hack and delegate what I can't hack, instead of being "contagiously optimistic". Without VC money you are pretty much a Moses with no israelites; you need people to be lost with you, and you also need people to see you part the sea. Company, as in companionship.

Fuck! I gotta stop writing autobiographical comments :-D

This article's focus on iPhone app developers is silly. Yeah, sure, you don't need VC money to build an iPhone app, but that isn't what most people would consider a legit web startup.