I see what's happening here. Many companies don't deserve investment. Investment is for companies that need money to get started or to grow - like companies in the mechanical, electronics industry or web companies that are growing too fast (like YouTube).<p>For many Web 2.0 companies, taking outside money is not something that is good for business. Outside money brings in problems and gives you too much space to fail, since there is this money cushion underneath you. It makes the companies get used to spending money at the stage when most other companies learned about financial prudence.<p>Investors don't care about this, however. They care about getting a return on their investment. So if they feel the hype will be enough to get someone to buy it out, or for the stock price to shoot up on an IPO, they will invest in companies that should not be invested in. They gamble there.<p>But right now, those gamblers see something different - the gambles are not going to pay off because the hype is dying down.<p>If your company does not offer true value, then you should not take money. You should fight in the market till you have a product that offers real value, and only when external money is needed should you take on capital.