Another conclusion I take back from the Web 2.0 Expo conference is that prestigious new web 2.0 start-ups are launching on initial investments of “a few hundred thousand dollars” instead of “a few million.”

This came out most at the session on venture capital, but it was everywhere around the conference. Picture excitement in the air. You’re supposed to gather together a few people and a good idea and get going. Web apps are supposedly easier and quicker to build, easier to launch, and easier to scale than the traditional CPU-based applications. Or so it seemed at Moscone Center last week.

Is it all true? Maybe. Maybe for a while. Maybe if you’re the right people with good ties to previous successful start-ups, and good contacts with investors. Perhaps it’s exaggerated. Still, worth noting.

This may also be changing some basic vc assumptions.

Tim Berry

Tim BerryTim Berry

Tim Berry is the founder and chairman of Palo Alto Software and Follow him on Twitter @Timberry.