This is total nonsense. You are correct about bedroom start-ups, building an audience and then selling to them. But that is only about making money. Garage start-ups were about a passion for the invention. Believing so much in your invention, that if you build it, sales will naturally follow. Hewlett and Packard built their instruments in a garage because they wanted such instruments, and they knew labs everywhere would make use of them. Jobs and Woz built the Apple I in a garage because they were passionate about bringing computing to the masses. That's what is missing in startups today, passion for the invention (they are products only secondarily), not just passion for money.