BW: The financial crisis makes it harder to get funding, but those that prove themselves during this period will be better positioned to thrive

"Landing venture capital is tough for startups (BusinessWeek, 2/1/08), even in a good economy. But given the ongoing financial crisis, how hard is it for early-stage companies to get funded right now? Venture capitalists say entrepreneurs face a much higher bar than in recent years. They liken the downturn to a period of natural selection, when weak businesses will fail but strong ones will prosper. New companies that prove themselves now, they say, are better positioned to thrive when the economy recovers.