For some time now, skeptics have been predicting the decline of Silicon Valley. Analysts seemed certain that after years of boom, the bust had to be just around the corner. But it turns out, a lot of start-ups are hanging on, these companies may have learned something from the last dot-com crash.

"It used to be that these companies would offer free lunch and perks like house cleaning services," says  Katie Benner, a journalist for the New York Times who's been covering the topic. "Now they know that's just not sustainable for a business."

Brenner says if companies don't watch their bottom line, they run the risk of becoming "default dead," a term that describes a company that has run out of money before they can make a profit.  

Alex Cohen spoke with Benner in detail about start ups culture in this current environment.

To hear the whole interview, click on the blue player above.