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Industry is reeling from its worst fund raising quarter in nearly eight years but one of silicon valley's leading venture capital investors -- helped.
Fund companies like Tesla Motors Hotmail -- and Twitter says the turnaround may already have -- god.
Tim Draper is a -- And managing director Draper Fisher -- -- He joins us now good to see attempt thanks for -- -- so and Liz by the way is going to be -- you want.
In Michigan but let me just first ask you to tell us what the good news this.
Well I actually think that that that our business is very much cyclical and when people lose jobs.
Have -- they look at their bosses and say hey He didn't do that good a job.
I can do better -- then they start businesses that potentially can transform an industry.
And then little by little they need to hire people and those people get hired and and it it becomes a -- cycle and that happens after every.
Big recession so actually I believe.
Venture capital entrepreneurial.
Virtuous cycle is is is on the rise I think we've got five really good years ahead of ourselves.
It may be a tough time to raise the money but there's never sort of a paucity of great ideas I was just in Silicon Valley with our crew at.
Everybody has a startup that it's very exciting to see but how do you get.
That better opportunity for an entrepreneur or to start a business what are we missing in this country right now because.
We could lean on the Angel investors -- me a that the guys like you were raising a lot of money for these opportunities but what else needs to be there.
Well -- actually I think it it seems to work here in the Silicon Valley it seems to have.
Have it's spirit of can do and very.
A lot of very excited entrepreneurs doing great things lot of angels willing to fund them.
Venture capitalists willing to fund them when they're run out of the Angel money.
And and so I think we've got the model working here it just needs to proliferate across the rest of the country.
And I think it it would help.
If you can government were thinking more optimistic.
-- -- win it I don't know where we had Clinton and Reagan we had this optimistic feel.
We had a high PE ratios in the stock market and people took -- chances and they hired more people and and our economy grew.
And I think we need that same kind of thing in Washington it's a -- -- got a -- It's a it's a it's interesting that we are we -- -- bringing up that period because I was just talking to a another venture capital -- -- about those that how He sees this period sort of like.
When we came out of the late seventies when everybody was down and depressed and limits to growth mentality.
But then we had -- command we had I've got a sort of a lifting of a lot of regulations and of course.
Taxes as well and that led to this boom of optimism that led to that the real -- question of apple and all of that the high tech companies.
Yeah I actually think that that.
You know the government should probably do a lot more a lot less micro managing of the people who were actually working.
And get themselves or or people out -- building our infrastructure.
I've just been to Dubai Singapore and Shanghai three the most modern cities of the world none of armor in America.
And I looked and I said well coming back to our cities here in America.
I'm a little disappointed because what were supposed to be the greatest and richest and most wonderful country in the world.
And have the best capitalistic system and all that in our our cities don't look like it.
-- Harm was done if -- by the government trying to play venture capitalist.
And putting so much taxpayer money in just a -- which then went belly up.
You know you look at China China will give free land start up companies they'll give all kinds of tax breaks and they'll give actual money.
We have to stop all and there isn't a lot of criticism about that and understandably so but was there some harm done there.
Well I think the harm comes after after the fact I think.
-- maybe the intentions were good.
But I don't think that's.
I I wouldn't look at that as an infrastructure bad I think that was probably a mistake I think.
Our government shouldn't be doing that if that's the private sector that's venture capital that's what I do.
I think the -- of the government can.
Right now if they have to be as big as they are white out well they go out there and build some roads and improve highways in maker.
Make our infrastructure work better I don't think it makes sense for them to.
To take all the time of my my analysts.
Deciding whether a stock is worth a dollar 42 -- a dollar 43.
When it's really just two guys and a dog.
I think -- just it doesn't make sense of so they're kind of over doing.
Of the people who are.
-- -- And we're trying to get the rest of the people back to work let's get those people back to work in and the best way to do that is to encourage entrepreneurship.
Encourage venture capital and and get this place moving again.
And encourage that can do spirit that got us out of doldrums in the past you've got a great spirits and thank you very much for coming in appreciate it.
-- for having me Tim Draper.
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