According to Fred Wilson at Union Square Ventures, they do. If you are a web entrepreneur, you owe it to yourself to read this post.
This chart showing the capital requirements of “web 1.0” startups compared to “web 2.0” startups is brilliant (click to enlarge). Notice the nice curve on the web 2.0 line, which reflects the relative ease of getting into the game these days. But note how eventually, you end up with a “real” business, and the cash requirements become very similar. Good stuff, Fred.