Remove Government Remove SBIC Remove United States Remove Venture Capital
article thumbnail

Why Governments Don’t Get Startups

Steve Blank

Today, the overwhelming number of entrepreneurs and startups in the United States are still small businesses. Scalable startups require risk capital to fund their search for a business model, and they attract investment from equally crazy financial investors – venture capitalists. lesson of using SBIC funds.),

article thumbnail

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.