"We take applications for funding every 6 months. Applications for the current funding cycle closed on October 17, well after the markets tanked, and even so we got a record number, up 40% from the same cycle a year before."

to indicate that enthusiasm for starting new startups has not dried up. I think the absolute number will not tell us the true picture about new startups. The more interesting number might be the difference in the application growth rates. Did the number of applicants grow more between Winter 06 and Winter 07 or between Winter 07 and Winter 08.

Thanks