Comments on: Puh-lease, No Bailout for the VC Industry

By: Alex Beevers

Alex Beevers — Wed, 24 Feb 2010 18:00:12 +0000

I applaud your commitment to giving out great information. I don’t think that we as taxpayers should be bailing out any more companies. Where is our ROI on these companies that were already bailed out. There isn’t any. Many of these companies that have been bailed out have not done anything for main street.

By: TJ McCue

TJ McCue — Wed, 25 Feb 2009 19:33:24 +0000

@Arthur Bland
Thanks. I agree. What sectors do you think make sense? I see Clean Tech as a huge one. Some have claimed it will be bigger than the dotcom days, but without the bust hopefully. I listened to an interview with Friedman while in Davos and it was well done.

I see Anita’s points very clearly, too, and agree. There has to be a way to spend smarter without making it a handout for the rich to get richer. Let’s spread it around!

By: Arthur Bland

Arthur Bland — Wed, 25 Feb 2009 06:34:31 +0000

I think Friedman’s point was let’s spend money on creating new companies in hot new sectors and technologies. — this is definitely what should happen TJ!

By: TJ McCue

TJ McCue — Tue, 24 Feb 2009 16:51:43 +0000

Hi Anita, I completely see your points. And I don’t disagree with you.

But I think the idea is sound to help jumpstart the economy with more investment in the right places — but just like with the bank infusion (that could have been handled better) and likewise with any infusion into the VC community it would have to be handled smartly.

Perhaps a better idea would be for the government to enhance its small business grants type programs perhaps alongside various loan programs.

Mostly, I think Friedman’s point was let’s spend money on creating new companies in hot new sectors and technologies. I don’t think he was simply trying to bailout wealthy VCs as we appear to be doing in the bank bailout.

By: Anita Campbell

Anita Campbell — Tue, 24 Feb 2009 13:38:17 +0000

TJ, the problem with saying that if you give money to venture capital firms it will go to the startups is … that it all gets mixed into the pot and ultimately the VCs will cash out with high returns if the startup makes it big, and our public money has helped subsidize their returns. If the startup doesn’t make it big, then the VCs’ risk has been lessened by having public money available and the taxpayer has shouldered some of the risk.

By: Mary Grace Ignacio

Mary Grace Ignacio — Tue, 24 Feb 2009 05:39:39 +0000

This bailout plans really doesn’t have ‘plans’ to stop too. I strongly agree to your sentiments Anita. You can’t just let your hard earned money — your taxes and everyone’s taxes to be spent that way. So pathetic.

By: TJ McCue

TJ McCue — Tue, 24 Feb 2009 04:13:50 +0000

Okay, I’ve read the NYT piece and I have to say I think his intent was good. He is suggesting we jumpstart the good things, not the bad things. Help kickstart the next Google, don’t kick a dying horse in some old company looking for survive based on a lack of innovation.

I want to be clear — I see many of the complications of NOT helping the likes of a GM or Ford or large company. Especially ones very near and dear to our economy. But it is hard to say which ones are important to save, or more accurately, to spend on and save those jobs. Or, if we let those companies struggle and restructure while giving money to clean tech or other inventions that have the power to revolutionize our economy and our world.

By: TJ McCue

TJ McCue — Tue, 24 Feb 2009 04:09:45 +0000

I just got chastised by a VC buddy of mine who suggested I read the piece by Friedman and realize that he was saying let’s put $20B into startups, into new ventures, into helping jumpstart what’s right about new businesses. Guess I’ll read more before I spout off.

By: TJ McCue

TJ McCue — Mon, 23 Feb 2009 22:49:23 +0000

I just had to tweet this, by the way. Unreal.

By: TJ McCue

TJ McCue — Mon, 23 Feb 2009 22:47:53 +0000

I’m simply stunned. Stunned.

I think any VC or startup or business owner that is contemplating these handouts has to read your latest SMBCEO post and then go attend this sort of training:

http://www.smbceo.com/2009/02/20/this-is-no-time-for-sissies-toughen-up-with-business-survival-training/