Re:At least now we know why Color really got that funding
by wtn on Saturday March 26, 2011 @04:03AM
(#2371620)
I don't see how SV or innovation will suffer greatly. People who don't have the nice VC connections can bootstrap and make it to profitability.
The people who stand to lose are VCs and their accredited investors. Legitimate companies with actual revenues should be able to get funding even if the VC funds leave.
One downside is that VC money is determining where the software developers go, which could lead to suboptimal allocation of skilled labor. However, some of these heretofore unprofitable ventures provide real value to the public (ie Twitter).
The people who stand to lose are VCs and their accredited investors. Legitimate companies with actual revenues should be able to get funding even if the VC funds leave.
One downside is that VC money is determining where the software developers go, which could lead to suboptimal allocation of skilled labor. However, some of these heretofore unprofitable ventures provide real value to the public (ie Twitter).