Until this summer this was the most common question at Silicon Valley parties, at bus stops, conferences and grocery stores. Everyone had a business model, none planned to make money, all focused on the exit strategy.
The euphoria attracted a despicable kind carpetbagger, one who wanted nothing more than money, and had a disdain for technology. All of a sudden technology was out of fashion in Silicon Valley.
Now that the dotcom crash seems permanent, entrepreneurs are looking for real ways to make money. No more vacuous "business models." VCs are hunkering down for a long haul. The average IQ of Silicon Valley entrepreneurs is zooming to its former stratospheric levels. There's a genuine excitement here now, but if you ask what the business model is you're going to get a boring answer.
Silicon Valley goes in cycles. Downturns are a perfect time to dig in, listen to users, learn what they want, and create the technology that scratches the itch, and plan on selling it for money.
DAVE WINER, CEO UserLand Software, Inc.