Tuesday, June 16, 2009

Paul Kedrosky on Venture Capital

Paul Kedrosky's report "Right-Sizing the U.S. Venture Capital Industry," dated June 10, 2009, has been published to the Ewing Marion Kauffman Foundation's website. Read a press release or download the full PDF of the report.

Kedrosky contends that the Venture Capital industry is perhaps twice its ideal size, suggesting that current downsizing is appropriate. What then are the ramifications for the proposed alterations to the SBIR program?

If Venture Capital is shrinking, and should be shrinking, is it really appropriate to be propping it up with public funds that are ostensibly intended for, what is it, SMALL BUSINESSES? Sounds kind of like propping up banks who STILL WON'T LEND to small businesses, because, what is it, we wish to unfreeze credit?

Perhaps Representatives Sam Graves and Nydia Velazquez (ranking member and chair respectively of the House Small Business Committee) would prefer a VCSP (Venture Capital Subsidy Program). I wonder how that would sell on Main Street?

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