Some interesting data from the recent PriceWaterhouseCoopers MoneyTree report on trends in venture capital. In Q2 2008, states that more than half of the US regions experienced a decrease in investment levels (both in number of deals and total investment). Its not a surprise that later stage investments saw the greatest jump in total deal flow making up 31% of the total volume. Total investment dollars for the quarter were basically flat YoY at $7.39 billion. As a startup, you should be looking to adequately capitalize your company during this rough economic patch and the data does imply that earlier stage companies could have a more difficult time raising money in the coming quarters. Although, you (early stage investor) no doubt have more flexibility with newer types of startup funding models like Ycombinator or angel funding.