Now that we are weeks into a financial crisis, not only are the predictions starting to surface on how technology, and specifically wireless will be affected, but actions are starting to be taken. In one of the most alarming examples, GigaOm reports today, that Sequoia Capital, is telling its portfolio companies to buckle down, and illustrated the point by displaying an image of a grave stone with the message R.I.P.: Good Times. Separately, Craig Moffett, an analyst at Sanford C. Bernstein, raised major concerns about communications companies, which are typically considered safe bets in troubled times. He said because of bad credit terms and customers cutting back, AT&T (NYSE: T) and Verizon (NYSE: VZ) will suffer and he cast serious doubts on Sprint (NYSE: S) Nextel, which will need $2 billion beyond the $3 billion it has already secured to complete its WiMax roll-out with Clearwire (NSDQ: CLWR). UPDATE: The stock market closed sharply in the final minutes of trading. The Dow fell 678.91, or 7.3 percent, to 8,579.19 (marking the first time it has been below 9,000 since Aug. 6, 2003), and the tech-heavy Nasdaq fell 95.21, or 5.47 percent, to 1,645.12.

We did our own homework and discovered similar sentiments in the VC community. In a discussion last week with Canaan Partners, which was founded in 1987 and has $3 billion under management, they said they are being more disciplined and are telling their portfolio companies to tighten spending, especially when it comes to marketing budgets. When asked to compare recent events with the early 2000’s, Hrach Simonian, an associate in Canaan’s Menlo Park office, said: “My colleagues said back then they were a little more optimistic than they are now…Back then no one expected it to happen, and now people are a little more prepared for the fact that things aren’t going well.”

More after the jump on how Canaan is dealing with today’s uncertainty…

How VCs are affected: Often times VCs can be shielded from short-term blips because they are looking for exits over the long-term. But if IPOs and M&A activity dries up, then it trickles down to investors. One of the more popular statistics being thrown around right now is that fewer start-ups have gone public this year than in any year since 1977. With IPOs out of the question, that leaves an acquisition. And, if the buyer knows the company doesn’t have the chance to go public, valuations are depressed, he said.

The impact of banks failing: Simonian said the lending landscape has changed and tightened up, but venture debt, which allows companies to secure debt by leveraging a round of capital, is still available. The terms “have been quite favorable…They know that we are behind the company, so the risk is mitigated.”
On Investing: “We are trying to be more disciplined. We realize that the exit markets are drying up and existing companies have to work through this storm and hang on to the cash and make it last longer. So, they are cutting their burn rate and making sure that they are spending their money wisely.”

On cutting the burn rate: As with the tech bubble before, layoffs were front and center. That’s not the case now, but companies are scaling back sales and marketing activities, or if a company was considering opening a new office, they might delay making the decision. But most of it is talk, not action. “I’ve seen some cost cutting, and I’ve definitely heard a lot of talk about it, but right now everyone is watching how things unfold and taking a conservative perspective.”

Wireless will remain strong: Canaan is still looking for wireless investments. The category will stay strong because buying new cellphones and applications are impulse buys. “We are cautious optimists…We are bullish in the wireless space. We are exploring companies that don’t just offer a passive entertainment experience, but have a clear value proposition and path to monetization. A lot of the phone applications aren’t monetizable, and that’s becoming more of a concern with the market going sideways…Posting huge user numbers is not enough.”