Friday, October 26, 2012

Taking Your Company Public: Identifying Venture Capital Vampires and Private Equity Vultures

The usury system of venture capital is as corrupt as the Federal Reserve, it's a process of virus incubation and cultivation that poisons entrepreneurial innovation thus the cycle of devastation perpetuates and corrupt equity siphoning is allowed to continue. This crossbred with fly by night consulting firms waging war on the minimal coffers of startup organization seeking counsel on expansion processes and fund raising leave entrepreneurs nowhere to turn as VC's rape the barely living, conmen pick the pockets of the corpse and Uncle Sam capitalizes off of everyone by taxation without proper education of rights.

It's no wonder that our economy is in shambles and advancements in mainstream technology and biotech has all but ceased. How can a company retain equity for future monetization for expansion if they are giving up 51% to a bunch of number crunchers in suits?

Here is a novel ideal, nurture the company in a safe, protected environment and allow them to grow. Organized holdings companies have been doing this for years. Publicly traded holdings companies are able to assist companies with massive growth by taking them in as a temporary subsidiary. As a subsidiary the company in incubation is able to use the expertise of a strong board of directors, globalization process, legislative contacts, legal review and advice and of course the ability to fund raise with traditional dog and pony shows and investor relations without the inhibitors of Regulation D Rule exemptions that cripple an organization from raising capital without being smacked down with solicitation legislation.

It's time to start catering to that old fashion innovation that built this country and made it the last standing super power on the planet. Our position is being challenged due to damaging laws enacted by 'do nothing' politicians and uninformed governmental organizations that crush entrepreneurs with IRS hit men and other unconstitutional devices sprung on Americans by Uncle Sam and his gaggle of goons.

Truth be told, we can't blame everything on government corruption and venture capital chumps. No one has ever questioned the methods of the above. Sure, a small business owner will go home and whine and moan to his wife and kids about his problems but he's all talk and no action. You've probably done it yourself; you spend two years trying to raise money so you can get your pharmaceutical company through FDA so you sell your soul and give up 70% of your company because your dream to realize your product on the shelves of stores or being proscribed by doctors becomes an infatuation and you lose control and your infatuation becomes an addiction and you lose sight of your original vision and all is lost.

There is enough blame to go around but now, just as always there is no accountability. To the VC, step back and analyze your deconstruction and burned bridges, to the entrepreneur, think twice before you sell out to the economic vultures and soul snatchers and to the holdings companies that are incubating and cultivating promising companies and concepts, congratulations! May your efforts be recognized and validated with publicly acknowledged success.

James Scott is the CEO of Princeton Corporate Solutions, a corporate globalization and political strategies firm, PCS offers a unique blend of think tank, corporate and governmental communication strategies to expedite the facilitation of long lasting relationship building in these necessary sectors.

EasyPublish this article:

No comments:

Post a Comment