I think we were discussing earlier how the credit crunch hadn’t hit Silicone Valley yet?

Venture Capital Hits a Cash-Call Crunch

By PUI-WING TAM and CRAIG KARMIN

Cash-strapped investors are starting to renege on their commitments to venture-capital funds, dealing a blow to an industry that has been the bedrock of Silicon Valley start-ups.

From pension funds to rich individuals to once-deep-pocketed financial institutions now in desperate shape, this year’s plunging markets have made it much harder for some investors to come up with the money they promised to invest in venture-capital funds.