Is the era of the VC backed IC start up over?

With the costs associated with starting an IC company increasing and the length of time it takes to see a return on that investment many VC's have moved to later stage investments or vacated the area altogether. However start ups are vital to innovation in a great many electronics sectors hence the financing of this community is important. Necessity is the mother of invention - are we about to see a new model for start ups that does not rely so heavily on VC backing or do we need to see some high profile successes to revitalise the interest of the VC's?
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