Government Venture Capital Regulation

The present U.S. administration would like to regulate more entities than it does; venture capital funds are not exempt from that view.

VCs advise startup companies they finance; The Securities and Exchange Commission would supervise and regulate the VCs as advisers.

Naturally, bureaucrats feel venture capitalists “advise” their clients when they lend funds or invest in them. But that makes for a slippery slope. That would also make every member of a company’s board of directors an “adviser.” Or place every major bank lender in this category.

There could be no end to such regulation. It would open up to meddling the job market for civil servants who never operated a pushcart, but think they know how to run any business assigned to them. Every bureaucrat would be able to evaluate and parse the meaning of financial and managerial advice that lenders and investors suggest. ( See the Earl J Weinreb NewsHole® comments.)