House Increases Taxes On Venture Capital At A Time When More Investment In Innovation Is Needed

There are certainly lots of problems with our financial system today, and many questions about the private equity space. But lumping in venture capitalists who do long-term, high risk investments in private companies to help them grow, with hedge funds that do short-term, highly speculative gambling-type investments without much focus on the underlying business or prospects, is a dangerous move. There are problems with the venture capital model, but for the most part it works quite well in funding all sorts of innovative companies. Putting this kind of speed bump into the market won't stop venture capital investments, but it could have some pretty serious consequences, especially in terms of the type of companies VCs are willing to invest in. The Senate still needs to vote on this issue, and hopefully they recognize that this is not the time to punish venture capitalists.
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