You're a crowd of unwashed developers building the World's Greatest Video/Photo Sharing Site in a tiny space in a dingy part of town. It's 1 AM. The cheapie D-Link switch has crapped out once again. The Community Manager needs some Diet Coke and Not Later, Now. And you remember that the key to your database scaling problem resides in the second half of Cal Henderson's book Building Scalable Web Sites.
Start-ups are mushrooming every where and every one of them is either a p2p or web2.0 sitting on a big pile of money ( VC funding ).I cam across this write up on why its a bad time for startups. Youtube's acquisition by Google further exemplifies this insanity.