> If stock markets weren't horribly over-regulated, would the VC industry even need to exist? It's not just the stock market, its almost everything about corpo

> If stock markets weren't horribly over-regulated, would the VC industry even need to exist? It's not just the stock market, its almost everything about corporate finance. The straitjacket bank regulators have placed around the ability of banks to go outside of the government defined process of evaluating credit-worthiness is a big factor. These rules (mainly FDIC insurance requirements) make it near-impossible for many companies to get loans. This problem incentivizes companies to play financial games (e.g., Adjusted EBITDA) to get around the crazy restrictions. This is why there is an emerging trend of non-traditional lenders (e.g. some VCs and PE firms). I’m sure the government will find a way to regulate them eventually.