7858
@7858.eth
The government would (and does!) give money to the wrong companies If they get it wrong every single time, they just point a gun at your head and say āanother ten percent this year or Iāll shoot you in the faceā If a16z gets it wrong often enough, all their money ends up in the hands of others and they go away
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keccers
@keccers.eth
š the public already subsidizes vc risk (hello svb bailout? still mad about that) and the gov is paying either way. itās just with VCs, we pay middleman markups failure =! Tax hike necessity, also. Thatās a slippery slope!!
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7858
@7858.eth
Strong agree that government should stop giving out money, subsidizing VC risk is bad. Government subsidy of almost any form is bad. My point is not that there would be an actual tax hike. It was just meant to be an illustration that thereās no organic and automatic accountability mechanism for government, as exists for private enterprise, at least in a healthy system free from government manipulation. VC is a massively positive sum game that grows the pie. We are better off with VCs taking cuts than with no VCs at all. There is no way that capital extorted from industry and citizens, then put into the hands of unelected bureaucrats is going to be allocated more efficiently than it would be by professional investors who pay their bills with their winners. So, assuming that we all want startups to exist and thrive, itās better to have allocation handled by VCs with skin in the game than by inept corrupt bureaucrats, or even perfectly honest smart bureaucrats, because their incentives arenāt aligned.
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