State's venture capital investment dives to new low

  • Article by: WENDY LEE , Star Tribune
  • Updated: January 20, 2011 - 11:22 PM

Minnesota companies' venture funding fell 48 percent in 2010, the lowest on record.

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SupervonJan. 20, 11 9:15 PM

Why would anybody invest in a state that plans to make business go broke with excess taxes and regulations? I'd prefer to invest in China-just buy Apple computer and you creat 10 jobs overnight.

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tietacJan. 20, 11 9:16 PM

Minnesota TAXES TAXES TAXES TAXES. Why start a company in this state?

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dr4golfJan. 20, 11 9:21 PM

Not surprising. Minnesota sucks as a place to gain investment capital. The Nordic/Germanic base are not open to risk taking, even if it is prudent. While MN is fairly well educated, the tendency to risk taking is low resulting in little real innovation. The success of MN is based on the early settlers who had no real choice but to innovate and create. While there is a lot of money here, people are not willing to take risks to create new, exciting companies even though the ideas are all around. Those ideas are capital starved here and end up either dying or moving out of state to where the risk takers exist.

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wunderdudeJan. 20, 1110:04 PM

Ask any VC and they'll tell you the FDA has killed off innovation in the medical device industry. Everything is going abroad. It's a sorry state of affairs when Americans have to travel to India for medical innovation.

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raineyrooJan. 20, 1110:11 PM

Why would there be any VC in a state that doesn't value higher education and the high powered research that goes along with it? It's obvious that the former Pawlenty administration didn't care and it's further evident that Teapublicans don't value it either. Their goal of turning Minnesota into a cold Alabama's coming true. At least we'll have a glut of evangelical churches, right?

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truthtopowerJan. 20, 1110:23 PM

Risk taking aside, one has to have at least a semblance of a chance of earning a profit from some venture and the current economic climate is not amenable to that at all. The big banks got their bailouts and socialized their losses and now we are in the period of fallout from that deal with the devil. We should have allowed them to fail. We should let the government/legal apparatus that stifles innovation fail as well.

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thecolonel63Jan. 20, 1110:35 PM

"In part due to uncertainty about federal regulations." That tells everything about putting VC money into medical products development. Has nothing to do with Pawlenty, the Team Party movement--it has everything to do with the FDA and Obamacare.

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daltrowitzJan. 21, 1112:09 AM

Put very bluntly, our state and federal taxes today in Minnesota are the lower than they have been in more than 40 years. They are about 1/2 to 1/3 of what they were when Time Magazine did an article about Minnesota called "The Good Life." While a few jobs are going to the Dakotas, most are going to places like China and Mexico, where you can pollute as much as you want and even skilled labor is less than 1/10 as costly as the minimum wage here. This leads me to believe taxes are not the problem, for even if the tax rate here was 0, an engineer in Minnesota would still be many times more expensive than one in China. T

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coacherJan. 21, 11 1:36 AM

If taxes were zero in MN, there would be a lot of productive engineers located here.

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daltrowitzJan. 21, 11 2:11 AM

Let's see. According to the U.S. Labor Department, the unemployment rate in MN as of December 17, 2010, was 7.0%. According to the same survey, 40 different states have higher unemployment rates. According to the Tax Foundation, the top corporate tax rate in MN is 9.8%. Of the 40 states with higher unemployment than Minnesota, 36 have lower corporate tax rates than Minnesota. Nevada, Washington and Texas all have corporate tax rates of 0 and yet have higher unemployment than in Minnesota. In the case of Nevada, they have the highest unemployment rate in the country. Based on these statistics, I repeat my previous assertion. The primary issue here has NOTHING to do with taxes.

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