Paul Graham: VCs and Entrepreneurs are Diverging

Open source, Moore's law, new programming languages, free marketing and instantaneous knowledge transfer are all reducing costs and dependency on external funding. Companies with business models, however marginal, can manage to recoup costs and remain profitable, which ultimately positions them well for future funding (if at all necessary) or buys time to boostrap breakthrough.

Read more here about why entrepreneur savvy may reduce VC impact in the venture community.