VC Says Lack of Tech IPOs is Blocking US Job Creation

Friday Jul 9th 2010 by Staff

A leading venture capitalist says the job market won't improve until the number of tech IPOs increases.

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 isn’t 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 doesn’t 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 — that’s the way to create jobs.”

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