Is There Too Much Venture Capital?
Jordan Hayes
jmhayes at j-o-r-d-a-n.com
Sat Dec 11 19:22:50 PST 1999
It seems to me that this is what a lot of people on this list have
been wishing for: a not insignificant redistribution of wealth.
Much of the inflow for venture capital comes from The Wealthy, with
high minimums for getting in and long periods to wait for the
payoffs. Much of the money is spent on labor -- overpriced labor,
it's true; but plenty of it goes to people with little or "the
wrong" higher education. $45k as a web programmer beats $8.50/hr
after three years at Barnes & Noble for a BA in English.
Most startups fail; thus, most stock options are worthless. Which
is part of the reason why salaries are skyrocketing.
But guess what? Those same people who you worked with in the campus
bookstore and talked about Marx with on the quad, now that they
have their jobs in The Valley: they go out and buy Ford Expeditions.
Me? Cynical?
/jordan
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