Re:America's Seed Fund: Up to $1.5M for Zero Equity
by chris_va on Monday April 15, 2019 @12:28AM
(#19663119)
Successful companies pay a lot in taxes (through employment if nothing else), so technically the government does see dividends (albeit in a non-traditional form). However, given the nature of government, it should technically be enough if society benefits more than the expected investment amount, regardless of the government payback.
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Re:America's Seed Fund: Up to $1.5M for Zero Equity
by reitzensteinm on Monday April 15, 2019 @02:02AM
(#19663380)
It's not that simple; every company pays a lot in taxes, so the government doesn't benefit more than if a random VC had put the money in instead.
There's also the opportunity cost of the investment; the yield has to be compared to things like food stamps, education, basic research etc. There's a lot of low hanging fruit a well run government could be picking.
I would also tend towards the view that if the government invests like a VC it should take equity. If these companies genuinely have no other option, I don't see why this would be a deal killer. If they have VC they could take instead, the government shouldn't be offering free money.