Listen to Reid Hoffman: Let Our Startups Bail Us Out

We couldn’t agree more with Reid’s analysis and recommendation on Washingtonpost.com. We’re glad to see one of the brightest minds in the Super Angel/Founder market space leading in this debate.

Lots of text spilled last week among VCs and Thomas Friedman about his proposal for government-sponsored entrepreneurship. Details aside, let’s face it: Q1 funding numbers look even worse than Q4, according to PEHub, and from where we sit, Reid is right that investment dollars are basically not flowing into early stage innovation at the time when it’s needed most. At True, we would rather see the Obama adminstration spend time creating the industries of the next industrial revolution versus propping up industries of the last industrial revolution. As previously posted, this is an issue of national significance.

We remain open for business and are investing actively right now because we believe that true innovation takes years to develop, and now is an excellent time to build a company. Great talent is available, input costs are low, but most importantly the noise has been silenced in a number of very important, large markets, so entrepreneurs have time. We put our money with small teams of exceptional people that see the world as it can be and strive to create. In our world, a small smart team can build tremendous value with small amounts of capital (particularly in a time like this).

Let’s hope more of the Valley can join this discussion and convince Washington to enact some sensible steps (such as those proposed by Reid) to put government dollars and attention where it could have the biggest, longest lasting impact: in the hands of our most talented entrepreneurs.