According to the National Venture Capital Association, in all of 2008 there have been just six companies that have gone public. Compare that with 269 IPOs in 1999, 272 in 1996, and 365 in 1986.
That’s quite a change and here’s the reason for the decline.
From the beginning of this decade, the process of new company creation has been under assault by legislators and regulators. They treat it as if it is a natural phenomenon that can be manipulated and exploited, rather than the fragile creation of several generations of hard work, risk-taking and inventiveness. In the name of “fairness,” preventing future Enrons, and increased oversight, Congress, the SEC and the Financial Accounting Standards Board (FASB) have piled burdens onto the economy that put entrepreneurship at risk.
Many in government assume that the producers will keep on producing independent of the shifting rules imposed on them. This is not the case. Rules and regulations meant to keep businessmen honest take the honest men out of business.
Washington Is Killing Silicon Valley
This WSJ article from before the holidays shows the effects only government can have on an industry.
That’s quite a change and here’s the reason for the decline.
Many in government assume that the producers will keep on producing independent of the shifting rules imposed on them. This is not the case. Rules and regulations meant to keep businessmen honest take the honest men out of business.