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In addition to the supply of capital (which is quite significant!), tax rates also affect the likelihood that the startup is successful. The higher the tax rate
by neilc 18y ago
In addition to the supply of capital (which is quite significant!), tax rates also affect the likelihood that the startup is successful. The higher the tax rate, the higher the company's burn rate, and the less time the company has to gain traction / positive cashflow.
- netcan 18y agoI wasn't saying tax rates do not have an impact on investment. I was saying that is irrelevant to Cuban's argument "You dont need to raise money. You need to be smart and be focused." If you are not raising money, then tax rates do not affect you via investors.
- neilc 18y agoThe idea that the economy can be saved by entrepreneurs that never need to raise money is sheer lunacy. I can believe that the funding climate might not be someone's primary consideration when deciding whether to start a company; I can also believe that it might not have much influence on the very early stage growth of the company. However, outside investment still plays a fundamental role in the growth and success of most companies of non-trivial size.
- netcan 18y agoOk. But you are disagreeing with the premise of the article. Not the article. The premise is that entrepreneurship is what will get the economy out of this. Not capital flows.
- neilc 18y agoThe point is that entrepreneurship (at any significant scale) is intimately related to the availability of capital. That applies to all sectors of business, but particularly to capital-intensive ones.