HN Explorer

Hundreds of billions in cash sitting on the sidelines

2 points by stevejobs ↗ HN
There are literally hundreds of billions of dollars parked in cash that aren't doing much to increase productivity and improve human welfare. In short, there is a tremendous savings glut, with most of that money outside the US, mostly from sovereign wealth funds.

However, every day there hundreds entrepreneurs and startups that are being starved of any funding, large or small. There is a disconnect between all this money available and difficulty of startups to raise capital to bring new ideas into the economy and better society.

I realize many ideas brought by entrepreneurs are questionable, but there should be a better way to allocate capital than it is currently done.

2 comments

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ram1024
are there really that many good ideas that are unfunded?

i think the advent of these seed watering ventures like Y-Comb and Techstars, the industry is getting the saturation it needs.

maybe instead of just seeding startups, someone needs to work the other side and convince venture to invest. squeeze both ends and they meet in the middle kind of deal

qhoxie
The startup climate has been and still is changing for a multitude of reasons, and funding is changing along with it. Agencies like YC make the barrier to entry lower for a lot of companies. This is not to say that it is easy at all, but good ideas/teams/people coming to the surface is getting more and more common when compared to the past.

Look at mattmaroon's slides that are on the front page right now. They outline a lot of problems and why they occurred. People are understanding what goes well, what doesn't, and why.