The Dot Com Nuclear Winter is over, and funding for Web 2.0 startups has never been better. But traditional VCs are now being challenged by a variety of changes to the startup economy. Lower startup capital costs, alternate financing strategies by angels and entrepreneurs, and early takeouts by mergers and acquisitions--hungry platform companies like Yahoo!, Google, and eBay have changed the way the game is being played by startups in the 21st century. So are later-stage VCs toast, or do they still have a relevant role in the startup economy? Who will be the new winners and losers on Sand Hill Road, and around the world?