flynn23 wrote:
] Add to this the fact that Bush's idea of a stimulus package is
] to chop the taxes on dividends, so that people will invest in
] petroleum producers and steel plants instead of startups and
] technology companies, and we've basically eradicated all the
] entrepreneurial momentum created over the last 10 years.

So, here is an unresearched counterpoint. One of the problems with VC is the need for an exit strategy... an IPO usually... People in the company are incented to take their company thought the exit strategy, but no further. A lot of companies fizzled after going public because all the good people cashed out. Furthermore, many companies were designed to make good IPOs rather then good overall businesses. The market is irrational and will buy a well sung story.

Paying VC though dividends would be a more realistic way to build strong companies, because the investors are paid with profits rather then with more investors. In this light, a dividend tax cut would be helpful to the startup world to the extent that it incented people to move in this direction.

Of course, no one is talking about this direction.

RE: VC Funding Slows to a Trickle