Why to Start a Startup in a Bad Economy
Good article, but I disagree with the Microsoft/Apple example in the beginning.  MS and Apple happened to come along when the microcomputer was really starting to take off, and they were able to ride that wave (while 1000's of other microcomputer startups crashed).<p>One thing that worries me personally about starting the "stereotypical" HN startup right now, is that I think the free/fremium model is going to lose steam FAST.  My prediction is that you will see more companies trying to start monetizing their web-app soon.  FWIW, TipJoy is well positioned to take advantage of this if my prediction is true.<p>Of course, I've always been a hardware/product startup hacker, but I've had a couple of rounds in software and Web 2.0 companies.  So, I'm not as immersed in web-app funding cycles as some others here are.<p>I would look to solar and certain other viable alternative energy options right now as the next major tech growth sector.  I think the tech startup world needs to see more "inventions" (again, admitting my own bias).<p>While many here may disagree with me, one of the problems with web-apps is that while they are cheap to get going (relatively speaking), I think that the saturation of non-revenue producing web-app companies, coupled with the low cost of starting them, will make many traditional VCs look elsewhere for their next investments.  The web-app community needs more investors like YC, that keep the investments and process realistic.