this is the “money slide” from Paul Kedrosky’s report on “Right Sizing The US Venture Capital Industry”. can you say “cause and effect”?
Gabelli is wrong. It’s not that we need to dump Sarbox to kickstart VC perfomance, it’s that we need to accept that VC is a specialized form of capital allocation which does not scale particularly well. Certain businesses are perfect for VC funding…every small company however is not VC worthy. My take is that Gabelli’s sarbox bellyaching has more to do with his scheming than it has to do with a real systemic problem.
