Erick Schonfeld noted that today's financial meltdown would have some far-reaching effects upon startups, particularly when it comes to venture capital funding. But that's not all the bad news for tech entrepreneurs.

As Eric Ruth at The News Journal notes, the credit crunch will affect day-to-day operations of small businesses. Many use lines of credit to cover gaps in revenue, including making payroll when budgets are tight. If startups haven't already obtained a line of credit, or have maxxed out what they have, getting approval for a new line of credit or extension of an existing one may be impossible.

In addition, as funding and credit dry up, it will impact everything from buying more servers to hiring more employees. Startups that are depending on growth to become profitable may be stopped in their tracks -- unable to access capital, and unable to pay for growth.

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