Web 2.0 effects : Israeli Start-ups not doing well either?

Just landed on an interesting perspective (based on facts) about how Israeli startups aren't doing very well in the last 4 years from 2006.

From the original post

In 2006, 2007 and 2008 there have been very few "exits". 2009 is not much better. These are sales of companies or initial public offerings in the stock market. Exit(s) is a buzz word in the Israeli start-up sector. It is what Israeli entrepreneurs seek more than anything else: cash for a 5 to 10 year hard work. Selling a company brings good returns to the investors and does not involve the process of taking a company public. But the shift in technology from software and networking to Internet and software services has slowed down the investment-development-exit train. Established venture capital funds were dealt a blow, many small ones are completely gone. Entrepreneurs in many tech sub-sectors needed to reformulate their ideas and start working on new prototypes. What Israel can teach the world is how quickly change happens. In US and other large markets change does not have to happen as quickly. The market's momentum can hold up companies and financial pipelines. But then they eventually crash. In Israel small scale reveals quickly what changed and where the new developments are going.

Read the full post here.

This holds true even for India. In fact, there are whispers that are turning to murmurs, and murmurs turning to voices, that even Silicon Valley model is breaking, the VC model is melting down and so on. Is it difficult to sustain or make money purely from internet based services or startups? Or is there a silver bullet to pierce through? And what about cyclic change where innovation and money is going to be made in non-tech world? We 'll have to keep watching the startup space world over.