The predicted massacre among the over-confident and over-financed venture capital investors in Silicon Valley isn't happening.

"Why not?" asked Silicon Beat. Because most firms are still hanging in there. They cut costs by laying off some of their staff and sold some of the companies they invested in at a decent, although not spectacular, profit.

In another sign that the sector has weathered the storm, Shasta Ventures has raised $210 m from investors. Shasta specialises in technology for the consumer market.

28 Feb 2005