3 ms·

This is a spectacularly bad headline. SF VC investment had a down quarter, but continues to completely dominate nationwide, and SF is separated out from Silicon

by trevyn 9y ago

This is a spectacularly bad headline. SF VC investment had a down quarter, but continues to completely dominate nationwide, and SF is separated out from Silicon Valley, which is in a very dominant second place.

yuhong 9y ago
But thinking about it, the US economy is based on credit and VC is another form of credit, right?
- JumpCrisscross 9y ago
  No, VC is equity. It may be structured as a note for tax reasons, but the conversion potential dominates the rate or credit terms. Credit is the other side of debt, which is separate from equity. (Bonus round: when the U.S. Treasury coins money, it records a claim against the Treasury's equity [1]. This is separate from the Federal Reserve's banknotes, which are a debt-like claim on the Fed. In practice, the Fed buys equity in the Treasury and then issues banknotes.) [1] https://books.google.com/books?id=HIuxDQAAQBAJ&pg=PA169&lpg=PA169&dq=treasury+coin+equity+accounting&source=bl&ots=GwD0eQtsrI&sig=Ld6-FmhVxxNiycjiYRwD-p_AM6w&hl=en&sa=X&ved=0ahUKEwiq5ITJxY7VAhWLOj4KHXUcBo4Q6AEIUDAI https://books.google.com/books?id=HIuxDQAAQBAJ&pg=PA169&lpg=...
anigbrowl 9y ago
The peak was in 2015 Q3. I was here for the 90s boom too, and this reversion to the mean doesn't surprise me at all. It'll be possible to ride the slope down for another year or two but thinking it's just 'a down quarter' is self-deception. Also, we're into a period of big political uncertainty, both domestically and internationally, so the next big growth area is going to be hardware with defense applications.
- JumpCrisscross 9y ago
  Is total venture funding stalling? Or is San Francisco's relative position just shifting? I'd guess a rebalancing, away from San Francisco's toxic real estate market and political environment, is a better-substantiated narrative than that of impending doom.

3 ms·

This is a spectacularly bad headline. SF VC investment had a down quarter, but continues to completely dominate nationwide, and SF is separated out from Silicon

by trevyn 9y ago

yuhong 9y ago
But thinking about it, the US economy is based on credit and VC is another form of credit, right?
- JumpCrisscross 9y ago
  No, VC is equity. It may be structured as a note for tax reasons, but the conversion potential dominates the rate or credit terms. Credit is the other side of debt, which is separate from equity. (Bonus round: when the U.S. Treasury coins money, it records a claim against the Treasury's equity [1]. This is separate from the Federal Reserve's banknotes, which are a debt-like claim on the Fed. In practice, the Fed buys equity in the Treasury and then issues banknotes.) [1] https://books.google.com/books?id=HIuxDQAAQBAJ&pg=PA169&lpg=PA169&dq=treasury+coin+equity+accounting&source=bl&ots=GwD0eQtsrI&sig=Ld6-FmhVxxNiycjiYRwD-p_AM6w&hl=en&sa=X&ved=0ahUKEwiq5ITJxY7VAhWLOj4KHXUcBo4Q6AEIUDAI https://books.google.com/books?id=HIuxDQAAQBAJ&pg=PA169&lpg=...
anigbrowl 9y ago
The peak was in 2015 Q3. I was here for the 90s boom too, and this reversion to the mean doesn't surprise me at all. It'll be possible to ride the slope down for another year or two but thinking it's just 'a down quarter' is self-deception. Also, we're into a period of big political uncertainty, both domestically and internationally, so the next big growth area is going to be hardware with defense applications.
- JumpCrisscross 9y ago
  Is total venture funding stalling? Or is San Francisco's relative position just shifting? I'd guess a rebalancing, away from San Francisco's toxic real estate market and political environment, is a better-substantiated narrative than that of impending doom.