Last time, investments went way down -- but that was at a time when technology startups were perceived (somewhat inaccurately) as being part of the economic problem.

It doesn't appear that this will be an issue this time.

Even during the Dot-Bomb, some notable startups were able to mature and flourish; the ones that come immediately to mind would be Google and Flickr.

I think all is not lost. At least not until we're all fighting over who gets to eat the last mudcake.