News From the Start-up Scene

How technology start-ups are faring in a tough economic environment

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As the downturn continues, some technology start-up companies are closing or being acquired at low prices, The Wall Street Journal reports. That, along with a reported decrease in angel investing, raise questions about the environment for innovation.

But the news isn’t all bad. The San Jose Mercury News recently highlighted entrepreneurial companies that are growing despite the economy, in sectors such as online video, software as a service (SaaS) and open source software. One key to getting venture capital now? Offering a business model that will save money for customers, according to The New York Times “Bits”  blog. And there’s always the possibility of eschewing venture capital entirely:

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