by Mike Masnick
Wed, Oct 14th 2009 1:00am
Last month, we were a bit worried that an admittedly clueless Congress might lump venture capitalists in with other private equity firms in putting forth new regulations. Venture capital is quite different from basic private equity, and the proposed regulations would be quite burdensome for VCs without having any benefit. These "systemic" risk rules don't make sense for VCs who aren't investing in public investment vehicles for short times, but instead do long term strategic investments in private startups. VCs have been pushing Congress on this, and it looks like they finally got through to someone, as it appears that Barney Frank is looking to exempt VCs from any such regulation. This makes a lot of sense as venture capital and traditional private equity are very different animals, and putting them both under the same regulatory rules makes little sense. Putting VCs under systemic risk regulations makes even less sense, considering how unlikely it is that VCs investing in startups are involved in any sort of systemic risk issues.
If you liked this post, you may also be interested in...
- Comcast Fancies Itself The Tesla Of Cable
- No Matter Who Our Next President Is, They Won't Understand Technology
- MIT Media Lab Launched Disobedience Award, Funded By Reid Hoffman
- Techdirt Podcast Episode 83: 'Disruption' Is Not An Excuse For Lying
- Cable Industry's False Copyright Claims Are Killing Cable Box Reform Efforts