Naval Ravikant at The Capital Factory 2010 Demo Day in Austin, TX outlines precisely how the entire ecosystem of startup financing is changing. Definitely worth your time.
From The Capital Factory: "Angels, super-angels, micro-cap VCs, and seed incubators are beginning to dominate early-stage consumer web investing. This is a permanent change because the underlying startups themselves have fundamentally changed. Startups also need to adapt to the new ecosystem of investors."