Venture capitalists say market hot for funding

Companies have continued to receive startup money because venture capital firms base their decisions on long-term investments, not current economic conditions, she said. Still, the downturn in the economy could eventually have an effect if the market for taking a company public goes south. Investors make their money when a company goes public.

"If there is a recession, the stock market is not going to be terribly conducive to firms going public," she said.