It's a great time to start a company and to invest in early stage tech companies. "Huh?!" you say, "Have you been stranded on a deserted island for the past month?! Just look at the markets, layoffs, and economic outlook!" Yep, I've got a ticker on my computer screen, and we've been having long discussions at CommonAngels. The question isn't whether to build companies but how.

It is a bad time if you depend on advertising revenue. It also is a bad time is you need to build a huge company to achieve your goals. It also is a bad time if you need a gazillion dollars to get there, especially across many rounds of funding.

It is a great time if your revenue is counter-cyclical to start and you can grow your business even more when the economy recovers. It is a great time because competitive risk is now way down--you aren't going to get a bunch of incumbent corporations entering your market nor will you get a bunch of well-funded startups on your heels.

It is a great time to have loyal, hard working employees. They aren't going to jump ship for a sweeter deal down the street. It is a great time to build a product methodically, with customer input and assistance. It is a particularly great time if you can build a company lean and mean with a modest amount of capital up front and make a good return for everyone on an average exit.

At CommonAngels, we are running at full speed. We have had a lot of discussion in the group, and yes, we get heartburn about the economy, financial risk and market risk. But, we are enthusiastic about the high-quality, dedicated teams we're meeting. We are bullish about the lower competitive risks and are working even harder with companies to have tight financial plans that can survive in the coming months and years.

We are financially cautious and entreprenurially optimistic. We hope you are as well.

--James Geshwiler