Good post about the impact of the economic downturn on startup entrepreneurs:

VCs to Entrepreneurs: Outlook for Software Startups Is As Good—or Bad—As Ever

Bigelow’s report from a VC panel discussion supports what I’ve been saying for a while now….it has always been really hard for startups to raise capital.  Just because you are struggling mightily fundraising doesn’t mean it’s because of the collapse in the financial markets.  It could just be your business/idea isn’t that great.

Smart investors will continue to invest in startups…..the biggest risks for tech startups have actually gone down significantly.  Here’s my risk assessment for StyleHop in light of the economic crisis:

Risk #1:  Competitive Risk – Lower.  It is much less likely that someone will come in behind us and steal our market away.

Risk #2:  People Risk – Lower.  It is much more likely we will be able to attract and retain the right talent.

Risk #3:  Financial Risk – Higher.  It will be harder to raise cash (but that risk drops after investment).

Risk #4:  Market Risk – Neutral.  Its is likely that fashion and apparel companies will continue to seek out our demand forecasting tool because it is a high ROI investment with a very fast return.

Manageable, right?  Would love comments from other entrepreneurs.