| Many entrepreneurs are claiming that venture capital | | | | of the business plans that come across my desk, I'd |
| has completely dried up. Financial analysts, who watch | | | | say a good 90% of them, aren't worth Funding |
| the venture capital arena note that there is only | | | | anyway, they don't deserve the funding, so maybe |
| between 10 and 20% of the venture capital available | | | | it's a good thing that the VCs are not wasting money |
| today, as there was prior to the global economic | | | | on nonsense. Some say this hard-core attitude is |
| financial meltdown. That is to say, it is neat to 90% | | | | wrong. |
| dried up, and without that venture capital funding, | | | | Indeed, I completely disagree, because I am a real |
| many small business startups do not have the money | | | | entrepreneur that had to build my business the hard |
| it takes to develop new innovations and concepts, | | | | way. There are far too many lazy startup |
| and bring them to market. | | | | entrepreneurs that want to start their company with |
| Local economic development groups in many regions | | | | millions of dollars and then hoping they can exit very |
| of the country claim that this is one of the problems | | | | quickly, and sell their company or take it public for big |
| they are facing at a time when commercial credit has | | | | dollars. Where's the value in that? Worse, I see many |
| been highly curtailed. With no funding from banks, or | | | | of these Internet start-up companies and social |
| venture capital, it is hard to produce new jobs in the | | | | networking companies, which are not economically |
| private sector. Currently, investment banks are also | | | | viable and have never returned a profit. |
| tight, and some large corporations that are sitting on | | | | I am personally appalled by the irrational exuberance |
| lots of cash and are busy buying up companies which | | | | of days gone by and the lazy attitude of some of |
| are dying on the vine because they cannot get their | | | | these up-and-coming entrepreneurs. They don't |
| second and third rounds of funding from the venture | | | | deserve funding, they don't deserve a dollar, much |
| capitalists. | | | | less millions of dollars so they can have a high burn |
| If you listen to all these people talk, you'd swear that | | | | rate, pay themselves outrageous salaries, only to |
| this is a financial calamity of epic proportions. | | | | hide and paeddle the shell companies to |
| However, as the coordinator for a think tank, many | | | | non-suspecting buyers. Please consider all this. |