If 2008 was the year from Hell for hedge funds, 2009 will be worse for venture capital funds, which will see their most Darwinian year ever. Since there is neither M&A nor IPO’s now, the exit for these investors is closed for the foreseeable future. All management attention is being focused in helping existing portfolios of companies survive with what they have by squeezing out marginal revenues and cutting expenses to the bone. What little new capital that is trickling in is from Asia, and that is going mostly into clean technology and life sciences. Information technology is now an orphan. Countless start ups starved of cash will go under, and most likely take several venture capital funds and management firms with them.