Daily Archives: December 23, 2008

Washington Is Killing Silicon Valley Entrepreneurship was taken for granted. Now we’re seeing a lot less of it.

The Silicon Valley is Experiencing a Dire Recession

The Silicon Valley is Experiencing a Dire Recession

http://online.wsj.com/article/SB122990472028925207.html
My company is based in San Francisco and I definitely identify with the viewpoint of the above article. A significant amount of our work is in the Silicon Valley which is experiencing a dire recession. According to the author, “In all of 2008 there were just six companies which went public. Compare that with 269 IPOs in 1999, 272 in 1996, and 365 in 1986. Faced with crushing reporting costs if they go public, new companies are instead selling themselves to big, existing corporations. For the last four years it has seemed that every new business plan in Silicon Valley has ended with the statement ‘And then we sell to Google.’ The venture capital industry is now underwater. . . . For all of this, we can first thank Sarbanes-Oxley. It has essentially killed the creation of new public companies in America, hamstrung the NYSE and Nasdaq (while making the London Stock Exchange rich), and cost U.S. industry more than $200 billion by some estimates.”