VentureBeat - Latest Comments in Obama administration to tighten regulation on VCs?

Re: Obama administration to tighten regulation on VCs?

PJ — Thu, 23 Apr 2009 00:39:57 -0000

Hopefully all these green happy Valley VC's speak up and stop this march to declare ware on innovation, wealth, and what has made this economy vibrant for decades.

Re: Obama administration to tighten regulation on VCs?

Tom Black — Sun, 29 Mar 2009 22:51:15 -0000

Hopefully all these VCs will think again the next time a Democratic presidential candidate comes sweeping through the valley collecting donations and support.

Re: Obama administration to tighten regulation on VCs?

motionview — Fri, 27 Mar 2009 13:03:55 -0000

Good, they played a significant role in putting these Bozos in office.

Re: Obama administration to tighten regulation on VCs?

Anthony Ha — Fri, 27 Mar 2009 02:18:30 -0000

Unless, of course, you still believe that most of the innovative startups are in Silicon Valley. I suppose that's debatable -- but me, I'd stay put.

Re: Obama administration to tighten regulation on VCs?

Anthony Ha — Fri, 27 Mar 2009 02:16:52 -0000

My impression is that these regulations aren't just a response to Madoff, but to the broader financial meltdown. Agree on the second point, though I'm not particularly informed when it comes to hedge funds.

Re: Obama administration to tighten regulation on VCs?

Anthony Ha — Fri, 27 Mar 2009 02:14:27 -0000

Ah, OK, thanks for pointing that out.

Re: Obama administration to tighten regulation on VCs?

Dean Petorsi — Fri, 27 Mar 2009 00:01:35 -0000

Yes, they are.

Look at CalPers (state employees), CalSTRS (Teachers) among others?

...In 1978, the US Labor Department relaxed certain of the ERISA restrictions, under the "prudent man rule,thus allowing corporate pension funds to invest in the asset class and providing a major source of capital available to venture capitalists....
http://en.wikipedia.org/wik...

http://www.boston.com/busin...

Re: Obama administration to tighten regulation on VCs?

chad — Thu, 26 Mar 2009 23:01:11 -0000

If I was a USA VC, I would take my fund, my LPs and be moving on to a new jurisdiction, pronto. Why deal with additional cost and regulation when there are plenty of jurisdictions that will be more than happy to be supportive, and with less taxes, more freedom and less hassle.

Re: Obama administration to tighten regulation on VCs?

AndreaF — Thu, 26 Mar 2009 21:09:37 -0000

Madoff'sPonzi happened because of lack of control, not becasue of lack of regulations.
And the people who lost their money were aware of the risks; just decided to ignore them.
VCs and PEs are different from HFs anyway nad certainly should not be bundled together.

Re: Obama administration to tighten regulation on VCs?

Anthony Ha — Thu, 26 Mar 2009 21:06:57 -0000

Yes, I definitely agree that this is a "devil is in the details" situation.

Re: Obama administration to tighten regulation on VCs?

Anthony Ha — Thu, 26 Mar 2009 21:05:54 -0000

VCs are investing pension money?

Re: Obama administration to tighten regulation on VCs?

Barbara Duck — Thu, 26 Mar 2009 18:25:57 -0000

I'm sure there's open are for compromise here too, but we don't want the makings of another Ponzi scheme either, so registration may not be a bad idea. As far as the taxes, that's an issue of it's own and should be up for discussion from both ends.

I see some of this as an effort to also try to bring government and private industry together on the same note if you will. I don't see a need for VCs to have to report every detail as well, but a general plan of business would be in line, after all the rise of the VCs in health care in particular arose due to lack of government funding and support and we would not have some of the drugs, devices, etc. available to us today if VC funding had not answered the call.

Re: Obama administration to tighten regulation on VCs?

AndreaF — Thu, 26 Mar 2009 18:08:16 -0000

Insane to provide confidential information and for VCs to be included as well.
First, the information will never stay confidential and therefore the risk of market distrotion and maniputation is hige.
Second, VCs, PEs and HFs are not the cause of this mess, Banks are. Banks offer a public service and the current regulation in place should be enforced better; imposing more regulations on the funds will make things worse.

Re: Obama administration to tighten regulation on VCs?

Dean Petorsi — Thu, 26 Mar 2009 17:24:59 -0000

Thank God. It's about time.

There have been some comments floating around for the past few months from people "in the know" about these changes.
I can't wait to see legislation passed where every Partner at a VC and Hedge firm will be required to pass the Series 7, 63, 65, 24, 27 & 31.
Considering these "privileged and over paid" firms are investing pension money and the VC industry has horrific returns over the last 10 years this is a great start.

Change is coming!!!!