""One of the most dangerous words in the world are: 'I'm from the government, and I'm here to help.'""
""The only reason the U.S. is resorting to this is because we have other nation states with whom we compete who are using industrial policy to further their industries that are strategic and maybe adverse to the U.S. in long term interests.""
""I think we're in a period of incredible acceleration,""
""The challenge you have inside the company for the founders and the team, [is] you feel as though you're on this trajectory, and then you end up being successful, but it's not quite as good as you hoped at one point.""
The Trump administration has begun acquiring permanent equity stakes in American companies as an element of industrial policy rather than temporary crisis intervention. Government co-investment on corporate cap tables raises investor unease and practical questions about state influence in private firms. A Sequoia Capital executive acknowledged that industrial policy can be warranted when competing nations pursue strategic industries, citing competition with states like China as a driving factor. Venture capitalists observe echoes of pandemic-era funding dynamics, warning of rapid valuation inflation. One portfolio example rose from $150 million to $6 billion in a year before correcting, creating expectation management challenges for founders and teams.
#industrial-policy #government-equity-stakes #venture-capital #valuation-inflation #us-china-competition
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