News Week: “… Silicon Valley Is Killing Entrepreneurship in the U.S.”

Over the past few years, we’ve seen two apparent crosscurrents in the startup waters. One is the tech explosion in Silicon Valley … The other trend is an overall decline in entrepreneurship across the U.S.—revealed by statistics and felt in places like Atlanta, Kansas City, Missouri, and smaller towns… Look at the money going into companies. Venture capital firms in 2014 pumped more than $32 billion into startups based in the stretch from San Francisco to San Jose, according to the National Venture Capital Association. That’s twice as much as all of the venture capital put into companies in all of the rest of the U.S. … New York and Boston are neck and neck at No. 2, at about $4 billion each. After that, the drop-off is steep. Read more:

Tectonic Shift in the Funding of Silicon Valley: Disappearance of IPO …


As tech groups shy away from IPOs, the wealth created goes only to those with the right access … Silicon Valley is in the midst of another investment boom, and it is unlike any that has gone before. The tech bubble at the end of the 1990s spilled out on to Wall Street as new companies with no record queued up to do initial public offerings. This time, with valuations once again soaring, the party is raging behind closed doors… The surge of private investment has also raised questions about how well equity markets function on such a large scale without the high levels of disclosure and other checks and balances seen in the public markets… — and whether the investment game is only for privileged insiders with the right connections or the strongest investment clout. Read more: “Silicon Valley: Inside the winners’ circle” By Richard Waters and Stephen Foley.