ZDNet: Venture capitalist Robert Ackerman, who co-founded Allegis Capital, says that the tech job market has re-bounded more quickly because few tech start-ups have been going public. He explains, These days, tech startups have to rely on being acquired by a larger company once they reach a certain size because there isnt an IPO market to help them recapitalize and grow to the next stage. The largest expansion in jobs for a young company comes in the period after an IPO. If a company is acquired it doesnt lead to the same job growth.
He blames lawmakers for passing legislation that discourages companies from launching IPOs, saying, Washington is trying to regulate the risk out of everything. We need policies that encourage risk taking, that encourage risks by entrepreneurs thats the way to create jobs.