Tags: stimulus

Upstart Firms Seek Piece of Stimulus Pie

By    |   Wednesday, 08 Jul 2009 08:19 AM

Venture capitalists are famous for their promotion of the private sector.

But now they are looking for help from the government, seeking to tap into the $787 billion stimulus package.

The program devotes more than $60 billion to non-polluting technology, rural high-speed Internet coverage, cyber security and healthcare information technology, The Wall Street Journal reported.

Those constitute areas of strong interest for venture capitalists.

Small technology companies were all the rage until the credit crisis struck two years ago. Since then, these companies have suffered losses from the weak economy and have found it more difficult to obtain enough cash to operate.

The stimulus money could provide the companies with funds and create demand in markets in which the companies sell.

Venture capitalists told The Journal the stimulus package could represent a lifeline for these companies.

The money "can be the difference between a young company making it through this time or not," Chuck McDermott, a general partner at RockPort Capital Partners, told the paper.

Just like the banking and auto industries, venture capitalists are turning to lobbyists to help their cause.

Turning to Washington’s bureaucracy is new for the venture industry, which generally has prided itself on staying away from the government.

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Economy
Venture capitalists are famous for their promotion of the private sector.But now they are looking for help from the government, seeking to tap into the $787 billion stimulus package.The program devotes more than $60 billion to non-polluting technology, rural high-speed...
stimulus
203
2009-19-08
Wednesday, 08 Jul 2009 08:19 AM
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