Nanotechnology Now

Our NanoNews Digest Sponsors

Heifer International

Wikipedia Affiliate Button

Home > News > It's Time for a Federal Fund of VC Funds

February 24th, 2009

It's Time for a Federal Fund of VC Funds

Abstract:
Thomas L. Friedman makes a strong argument for investing in the future not the past, in this Sunday's (February 23rd ) New York Times editorial "Start Up The Risk Takers". He argues that putting $20 billion to work in the areas of technology and innovation with entrepreneurs who can lead us to the future is better spent tax-payer money than $20 billion spent propping up business like the auto industry that have obsolete business models.

Let's set aside the auto industry rescue for a moment as it is not the only bailout in progress. It pales in comparison to the bank bailouts that have already been granted.

A Fund of VC Funds

Let's focus instead on Tom Friedman's notion of $20 billion set aside to invest in venture capital funds that in turn will invest in technology, alternative energy, biotech, nanotech and clean tech companies. The idea for a fund of VC funds is a promising one, but it is not focused enough to produce results, and here's my reason why. Investing a billion dollars in each of 20 venture capital firms will not necessarily produce the results we want because funds at this level are often late stage funds that need to put large amounts of capital to work. Some like Kleiner Perkins Caulfield & Byers, Sequoia Capital and Benchmark are Venture Capital funds that can do both - that is invest in early stage and have the economic power and resources to invest large sums in later stage, too. Yes, Tom Friedman is right when he says that much of the capital for these VC's came from pension funds, university endowments and the like. They are down on their portfolios too. Many are looking for sources of capital right now and not more investments. Frankly, lack of exit strategies for these investments creates a bigger downdraft now.

Source:
huffingtonpost.com

Bookmark:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

News and information

Dr Barbara Armbruster promoted to Worldwide Sales and Marketing Director for XEI Scientific September 27th, 2016

Fighting cancer with sticky nanoparticles September 27th, 2016

Gold nanoparticles conjugated quercetin inhibits epithelial-mesenchymal transition, angiogenesis and invasiveness via EGFR/VEGFR-2 mediated pathway in breast cancer September 27th, 2016

UNAM develops successful nano edible coating which increases life food September 27th, 2016

VC/Funding/Angel financing/Loans/Leases/Crowdfunding

Carbodeon Ltd Oy Closes EUR 1.5 million Funding Round From Straightforward Capital: Carbodeon will accelerate its nanodiamonds business and expand manufacturing capacity August 21st, 2016

Leading Advanced Materials Manufacturer Pixelligent Closes $10.4 Million in Funding: Capital Will Boost Capacity for North American Manufacturing, Drive Asian Expansion, and Continue Innovation in Solid State Lighting and OLED Display Applications August 16th, 2016

Harris & Harris Group to Host a Shareholder Update Call, Including a Presentation by One of Its Precision Health and Medicine Portfolio Companies, Muses Labs, Inc., on August 23, 2016 August 16th, 2016

NanoLabNL boosts quality of research facilities as Dutch Toekomstfonds invests firmly June 10th, 2016

Govt.-Legislation/Regulation/Funding/Policy

Crystalline Fault Lines Provide Pathway for Solar Cell Current: New tomographic AFM imaging technique reveals that microstructural defects, generally thought to be detrimental, actually improve conductivity in cadmium telluride solar cells September 26th, 2016

Tattoo therapy could ease chronic disease: Rice-made nanoparticles tested at Baylor College of Medicine may help control autoimmune diseases September 23rd, 2016

PHENOMEN is a FET-Open Research Project aiming to lay the foundations a new information technology September 19th, 2016

NIST Patents Single-Photon Detector for Potential Encryption and Sensing Apps September 16th, 2016

Interviews/Book Reviews/Essays/Reports/Podcasts/Journals/White papers

Fighting cancer with sticky nanoparticles September 27th, 2016

Gold nanoparticles conjugated quercetin inhibits epithelial-mesenchymal transition, angiogenesis and invasiveness via EGFR/VEGFR-2 mediated pathway in breast cancer September 27th, 2016

Crystalline Fault Lines Provide Pathway for Solar Cell Current: New tomographic AFM imaging technique reveals that microstructural defects, generally thought to be detrimental, actually improve conductivity in cadmium telluride solar cells September 26th, 2016

Researchers at the Catalan Institute of Nanoscience and Nanotechnology show that bending semiconductors generates electricity September 26th, 2016

NanoNews-Digest
The latest news from around the world, FREE




  Premium Products
NanoNews-Custom
Only the news you want to read!
 Learn More
NanoTech-Transfer
University Technology Transfer & Patents
 Learn More
NanoStrategies
Full-service, expert consulting
 Learn More











ASP
Nanotechnology Now Featured Books




NNN

The Hunger Project







Car Brands
Buy website traffic