The real problem is that we don't have a more effective capital model. While there's lots of experiments in funding going on, no-one's really figured out a risk

The real problem is that we don't have a more effective capital model. While there's lots of experiments in funding going on, no-one's really figured out a risk model that works in good times let alone bad. Fundamentally new businesses fail at a high rate, it's the nature of new businesses. But that means cost of capital is going to be high to cover the cost, but without high-growth it's hard to justify that cost (and that's not even getting into things like fraud which are a big reason new businesses can't get financing)