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Listen to Reid Hoffman: Let Our Startups Bail Us Out
March 3, 2009
We couldn’t agree more with Reid’s analysis and recommendation on Washingtonpost.com. We’re glad to see one of the brightest minds in the Super Angel/Founder market space leading in this debate.
Lots of text spilled last week among VCs and Thomas Friedman about his proposal for government-sponsored entrepreneurship. Details aside, let’s face it: Q1 funding numbers look even worse than Q4, according to PEHub, and from where we sit, Reid is right that investment dollars are basically not flowing into early stage innovation at the time when it’s needed most. At True, we would rather see the Obama adminstration spend time creating the industries of the next industrial revolution versus propping up industries of the last industrial revolution. As previously posted, this is an issue of national significance.
We remain open for business and are investing actively right now because we believe that true innovation takes years to develop, and now is an excellent time to build a company. Great talent is available, input costs are low, but most importantly the noise has been silenced in a number of very important, large markets, so entrepreneurs have time. We put our money with small teams of exceptional people that see the world as it can be and strive to create. In our world, a small smart team can build tremendous value with small amounts of capital (particularly in a time like this).
Let’s hope more of the Valley can join this discussion and convince Washington to enact some sensible steps (such as those proposed by Reid) to put government dollars and attention where it could have the biggest, longest lasting impact: in the hands of our most talented entrepreneurs.
Chirag says:
I also agree with Reid… To be able to harness the power of counter-intuitive thinking coupled with the discipline to act and moreover nurture that among others is a critical element of intrepid leadership.. As ones with entrepreneurial vision, folks like us must lead by example.
March 18th, 2009 at 9:24 am
Kevin Flood says:
This is a real issue and one I addressed in my blog early this year “Should The US Government Become A Venture Capitalist” http://kevinflood.blogspot.com/2009/01/should-us-federal-government-become.html
I am an entrepreneur and adviser raising funds and am representing many start ups in their quest to raise capital. It is sad to see so many powerful and innovative ideas, companies, technologies, services and products go to waste. This is such a great time for young companies to start a business. Talent is available and people are looking for change. Certainly the government could take a more proactive approach to stimulating and growing the economy. What better way then to enable motivated and intelligent people to test their ideas in the marketplace.
March 18th, 2009 at 8:03 pm