Venture Capital's True Impact

In a guest post at TechCrunch, Vivek Wadhwa adds his voice to those questioning the VC industry's play for bailout money:

What we need to do is to apply the same rules to VC's which they impose on their companies - force them to make tough choices and get their business models in order. And instead of giving the tax-breaks to the middlemen, let's give these directly to the entrepreneurs who take the risks and create the innovation. It is the entrepreneurs who fuel the economy, not the venture capitalists or investment bankers.

This post is cites reputable studies that show the real impact of VC money, including Paul Kedrosky's discussed earlier at this blog. 

I have said this before, but it bears repeating -- venture capital funds a very small part of the entrepreneurial sector.  One study suggests that 99.962% of all entrepreneurial ventures in the US had NO venture capital investment.

Venture capital does have some impact on our economy, but much less that the lobbyists for VCs would like us to believe.

(Thanks to Andy Tabar for passing the TechCrunch post along).