A badly titled article. What the guy actually says is that VCs are too reliant on the M&A market.

It's true, but what are the alternatives to getting acquired?

You need a solid track record of revenue to go public (it's not like the bad ole bubble days).

Even if you're determined to stay private, where will your sustaining revenue come from, especially if you're running a consumer-oriented web service?

Problem is that a lot of Web2.0 startups have no real business models. Serving ads & relying on AdSense is not a business model.