Are There Private Investments in Israel 2009?

I was invited to lecture at ISEMI about raising funds from private investors.
In order for my lecture to be relevant and up-to-date I've decided to check the current situation regarding this issue.

I've approached a few serious angel investors who were willing to share their views. 
As I suspected, it is not easy at all to get funding these days.
Out of 7 investor I contacted only 3 declare they still invest. 
The estimate is that there is a drop of 50-90% in private investments.

I'll try to summarize what I've learnt from these discussions.

The dark side:

• Out of 3 angels clubs in Israel, 2 are not active.
• Many potential investors are counting their losses.
• Bad environment for investments: no IPO's, slowdown in M&As, VCs are also suffering. 
• There are attractive alternatives for investments. 
• Most investors are busy trying to save their portfolio companies.

 The bright side:

• Few investor are still investing.
• One investors says that the best exits came from the former bubble burst investments.
• Easier to find good founders and employees.
• The survivors of this era can make great success in the future.

 Those who do invest, selectively, use these investment criteria:

• Lower valuations.
• Focus on near future revenues.
• The funds should be enough for at least 2 years.
• Trying to create investment coalitions.
• Quick validation.

So what should entrepreneurs do?
The advice of an investor and a former entrepreneur says it all: build a bootstrap plan for going through 2009-2010 with very little cash and still deliver a product/service, or otherwise wait..

I'm not sure that's what my audience was hoping to hear though.