Paul Graham, whose essays I used to like before he started ysweatshop, has an essay out about VC being a casualty of the current recession.
This is the first time I have seen statements from him about how low the costs of some of their startups are in the essay he states:
We've had startups that were profitable on revenues of $3000 a month.
What a farce, you can't have a team of people involved and call youself a startup or profitable on $3000 a month. You could say you work at less than minimum wage for a millionaire