Friedman: Let's Turn The Government Into A VC Firm. While entrepreneurs everywhere starving for funding would welcome any source of funds, I essentially agree with Fred Wilson's response to Tom Friedman:
The top venture firms don't want, don't need, and are never going to take government money. The same is true of the top entrepreneurs.
The worst firms, on the other hand, will gladly accept government money. And that is what is going to happen with all of these government efforts to pour more money into the "innovation sector". That money will go to bad investors and weak entrepreneurs and management teams for the most part. It's a problem of adverse selection.
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