Techdirt features a good synopsis, why VC investments shrank in last years. I my opinion the chain theory makes sense. People won't have the 'extended' view into the future. Instead it does matter, what somebody can do for the company recently and not in a far future. So who cares what's going on in 10 years?
Maybe I'm wrong, but for the first time since 2001 I think we have seen the bottom line. Early stage and later stage investments will go up during 2003. I'll put some bottles of red wine on it.