I think it's time to take such an advise seriously. Today's investments go to either successful late stage startups or seed ones[1]. And this trend is likely to continue for a while.

Also, there was a good discussion about profit[2] a week ago. I recommend to take a look.

[1] http://www.reuters.com/article/2011/10/30/us-venture-bround-...

[2] http://news.ycombinator.com/item?id=3147487