Jeff Cohn is a Los Angeles-based venture consultant, who helps source investment opportunities for San Francisco-based MHS Capital. Jeff shares some of his thoughts on how the incoming Obama administration can help create jobs, from venture capitalist's point of view. (Jeff's original post is here.)
While watching the inauguration today I decided to actually be productive and put some thoughts on paper about how the government might help get us out of this depression (not a recession anymore).
1) Give tax credits for direct investments in private companies not funds or public companies.
2) Give tax credits for companies who make cash acquisitions and create liquidity for shareholders to restart the capital cycle.
3) Open up the IPO markets by reducing restrictions on companies to go public creating liquidity for shareholders which eventually cycles back to new companies.
4) Create a new Securities Exchange Commission that is willing to legitimately combat securities fraud and will bring back old short selling and uptick rules.
5) Give money to smaller regional banks and VC focused banks who can smartly lend money (debt) to companies who are creating innovation and jobs.
6) Encourage more government based Venture Capital funds (equity) to invest in companies who can help government harness the benefits of technology and become more transparent.
7) Give tax credits for hiring U.S. based staff
8) Reduce government regulations on big business monopolistic behavior stifling start-up innovation: Telecommunications, Energy, Biotech, Automotive, Media.
9) Demand more transparency from all financial vehicles who create jobs: private equity, venture capital and those that destroy jobs: hedge funds.
10) Weed out the government bureaucrats and lobbyist who waste tax payer money.
Jeff Cohn is as a "buy side" venture consultant focusing on bootstrapped and buyout oriented investment opportunities in Southern California. Jeff sources investment opportunities for San Francisco based MHS Capital. You can read his blog at blog.estartegypartners.com