Venture Capitalists Say Romney Is Not One Of Us

When staffers at the National Venture Capital Association see a report that refers to U.S. presidential candidate Mitt Romney's investments as venture capital, they grimace -- and then contact the author to explain politely why it's wrong.

Source article

My thoughts? Yeah, right. Like we're going to believe them as if they don't have a stake in his getting elected.

That'd be like a wolf being unleashed on a population of sheep and the shepherd saying, "Look out! A wolf!" And other wolves going, "He's not one of us. He's not a wolf! Look. He's a sheep just like you."

He isn't part of Bain anymore so he really isn't involved with them in that way. So technically he is in the clear on this one. And when it comes down to it Venture is covering it's butt no matter who wins.

Individual venture capitalists have given $453,550 to the Romney campaign, compared with $402,915 to the Obama campaign, according to the Center for Responsive Politics' Opensecrets.org.

Well he really is not a venture capitalist. He acts as one and sells himself as a man who can help promote a new idea and has the money and radio stations and even talk radio who can make it happen. But he acts different when he sees a lack of interest in a product and turns to vulture capitalist. Vulture capitalist is where he goes against every thing a venture capitalist is. Venture capitalist will play sales man to the end. Mitt Romney will turn vampire when he sees it will benifit he more to kill the company than to promote it.

Is it the same thing when you buy companies to strip them, as opposed to invest and fund their growth?

Vulture capitalist perhaps?

reply to post by CoolerAbdullah786


Actually - it states in the article quite clearly why they are saying this...

Venture capital backs companies from their earliest days, and some go on to create thousands of jobs; private equity typically comes in at later stages to turn around underperforming companies, sometimes via job cuts and other unpopular cost-savings moves.

Venture capitalists back start-ups and often make jobs to make $. Growing the company makes them $.

Private equity comes in when a company is in trouble and often cut jobs to make $. Gutting the company makes them $.

See the difference?

So, this why they are saying Romney is not one of them. They are saying he isn't - because he isn't and they don't want people to think they make their $ by cutting jobs when often, it is the opposite.

Originally posted by benrl
Is it the same thing when you buy companies to strip them, as opposed to invest and fund their growth?

Vulture capitalist perhaps?

This is just what I was trying to point out..

No. Not a venture capitalist. Yes - a private equity firm.

Think of this way...

Frank has an idea to make widgets. He founds Frank's Widgets. A venture capital company would say, "Hey Frank, that's a great widget!!" "Here, we'll loan you $10mil to help hire people and grow the company. The interest on the loan will be what we get out of it." That is what venture capital companies do.

Meanwhile Bob's Blocks has fallen on hard time and is deeply in debt. To get it out of debt a private equity company may loan it $ but basically take it over. Outsourcing jobs, closing plants, etc, to get the $ they made back. That is what private equity companies do..

reply to post by CoolerAbdullah786


You clearly only looked at the headline and did not read the article. They do have a point, but then there is Staples which was venture capitalism.