Why states shouldn't have VC funds
Good stuff from Tony Nash, formerly of Herring, now at Always On, in this piece called The State Line.Excerpt:
In the end, it's not the state's role to pick winners and losers through venture investment, it's to provide an infrastructure and environment in which entrepreneurship can flourish. This is the more equitable path, given our democratic system, and one less prone to unrealistic political expectations of big, fast returns. If a state wants to grant a subsidy to technology firms to promote fast job growth, let it do so. But venture investing should be left to those with a tolerance--even an affinity--for risk.
Chris Alden
Christopher J. Alden is Chairman & CEO of Six Apart, Ltd., the world's largest blogging company. Six Apart acquired Rojo Networks, Inc., creator of an innovative RSS feed reading service, where Mr. Alden was co-founder and CEO. Before Rojo, he was CEO of Red Herring Communications, Inc., publisher of Red Herring magazine -- described by the Wall Street Journal as the "bible of Silicon Valley" - which he helped launch out of his house in 1993. Prior to that he founded Computer Guides, a consultancy, and taught computer studies at Crystal Springs Uplands school. Mr. Alden also has a background in real estate development and hotel management, having worked for Western Land Corporation and Woodside Hotels & Resorts.
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1 Comments
The CIA has a venture fund used to develop technologies which they believe could increase national security.
There are a number of companies in the bay area who have had CIA funding.
I don't think it's invalid as long as it's part of standard goverment procurement.
If you REALLY need a foo widget and there aren't any companies out there what's wrong with helping otu entrepreneurs?
Kevin