"But would that not just crowd out funds that would have invested

anyway."  Not sure about that, only 14% of plans get screened by

angels:

http://www.reincu... ,

would VCs be significantly better?

Chris Powell

mindyourstreet.com
Peter Cunningham wrote:

> Personally I think the government is the worst allocator of resources.

> Decisions will be afflicted by politics (MPs defending marginal seats

> will want pork for their constituency), bureaucracy, political

> correctness and regional policy - never a recipe for optimal

> allocation of resources. And there will be pressure to keep funding

> 'lame ducks' that private investors would just leave to die.

>

> A radio 4 interview I heard asked how the US was able to find so many

> projects so quickly for 'public funding' as part of Obama's economic

> stimulus - the answer was easy these were all the projects that had

> already been rejected as hairbrained or non-viable that were just

> being re-presented!

>

> The only way it would work would be as a blind investor letting a VC

> or business angel association take the lead, evaluate the business

> case and value the opportunity. But would that not just crowd out

> funds that would have invested anyway.

>

> Maybe tax breaks for investment or reviving the small business loan

> schemes would work - or how about creating a fund that would allow

> entrepreneurs to claim a minimum and decent revenue when they work on

> first few months of a start up (having worked and lived in France for

> several years, many of the entreprenuers I met 'arranged' to be made

> redundant to be able claim two years salary from the ASSEDIC - 60% of

> the old salary paid by the government - while they worked on a start

> up. It was possible as long as you only took dividends and no salary!

> Makes you wonder why there are not more French entreprenuers? That is

> because they try and kill entrepreneurs with taxes and redtape as soon

> as they are successful, but thats another story). I always wondered

> why we spend so much money for the unemployed to sit on their

> backsides but never help those that try to help themselves.

>

> Thats my rant over!

>

> --- On *Mon, 20/4/09, Antony Penn /<[address removed]>/* wrote:

>

>     From: Antony Penn <[address removed]>

>     Subject: Re: [entrepreneur-1056] Nice one Gordon

>     To: [address removed]

>     Date: Monday, 20 April, 2009, 2:00 PM

>

>     Given that:

>     1) banks are risk-averse

>     2) the banking ecenomy is shot; and

>     3) the UK government have a poor record of encouraging small

>     businesses

>

>     You can guarantee that:

>     a) it will be many many years, if ever; and

>     b) you will find it near impossible to qualify

>

>

>     On 20/04/2009, *Hamlesh Motah* <[address removed]

>     <mailto:[address removed]>> wrote:

>

>         I'd be very surprised if the "Sheriff of Nottingham" manages

>         to make this happen!

>

>

>         On 20/4/09 12:29, Jon Vollemaere wrote:

>

>             How long do you think it will take to go live ?

>

>             http://news.bbc.c...

>

>

>

>

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