Given the tumultuous market for technology companies these days, it hardly seemed surprising to find the path barred to Silicon Valley's most prominent financial backers. But in Silicon Valley, most people are taking in stride a year of market gyrations that has seen many Internet companies go belly up or scale back their aggressive plans. The gold rush still is on, though in a more muted and conservative fashion.
People are really bullish.
For Chicago and other outposts that are pressing to become high-tech hubs, the ongoing investment in California is a sign that the industry has the staying power to keep boosting local economies as well. Yet it also suggests that the tech sector's brainpower and financial strength will remain concentrated in Silicon Valley, and that entrepreneurs seeking their fortune in the dot-com world will continue migrating west. What has changed in Silicon Valley in recent months is an increased skepticism among investors and employees alike about the viability of new firms. That's typified by a greater focus on profitability instead of just revenue and market share. Yet even as they demand more conservative business plans, investors keep placing big new bets.