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Why Governments Don’t Get Startups

Steve Blank

Scalable startups require risk capital to fund their search for a business model, and they attract investment from equally crazy financial investors – venture capitalists. When they find it, their focus on scale requires even more venture capital to fuel rapid expansion. lesson of using SBIC funds.),

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The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

to spur innovation was a new government agency to fund new companies. The Small Business Investment Company (SBIC) Act in 1958 guaranteed that for every dollar a bank or financial institution invested in a new company, the U.S. government would invest three (up to $300,000.) In response, one of the many U.S.