Daniel and I are growing our PHOTOtool, WebFolio and Total Control Sites. We have no investors, no VC money, nor do we have any time to party... we are working. And we don't live in 'the valley'. I agree with Jason that it is a great time to start a business, if starting a business is your goal. If, however, you wanna get your hands on a stack of other people's money, yeah - it is probably a little more difficult.
It's a great time to start a business - Signal vs. Noise (by 37signals): "Yes, it's a bad time to start a company on VC diesel, using me-too technology, flaunting your non-existing goods, doing tagging because it's cool, and spending all your time partying. Guess what? That was never a good idea."There are a great many ways to create a business with the low cost of entry, significantly lower bandwidth and storage prices, and technology that encourages instead of limits.
If you are a photographer or designer, consider growing additional streams of income with online sales, stock, e-zines, and more.
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