VCs Upset That The Government Is Moving In On Their Business

from the it's-ours!-all-ours! dept

It seems many VCs are really annoyed that the Small Business Administration is putting even more money into “approved” venture capital firms to spend on startup investments. The angry VCs, many of whom are returning money they raised to their limited partners, say that the government is helping to prop up the “VC Bubble” by pumping in more cash when it’s not needed. Realistically, it seems they’re just worried about the competition. Most VC firms that use SBA funds to fund companies target a different type of startup than a traditional VC firm does. However, these days, when it’s becoming tougher to find viable startups to invest in, private VC firms are broadening their horizons, and finding that many of the companies they wouldn’t have invested in previously are taking SBA money via these “approved” VCs.

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