Why public capital is needed at growth stage when private markets exist
“Why do we need a public actor to act both, of course, at the early stage?”
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I gotta ask you this question. Why do we need a public actor to act both, of course, at the early stage? I think most people can understand that. But why at the growth stage? Why can't we not solve this with private capital?
Well, there are different reasons for this. One is one is enough an argument like a market failure. The the market the private market has not done it. That's one argument. The second one is we are in a major transition. We are moving from a set of technologies to another set of technologies, so the risks are substantially higher. And, a public intervention helps to to to to speed up the transition.
About this clip
A discussion on the rationale behind public sector involvement in growth-stage investing, beyond just early-stage support. The speaker argues that market failures and the heightened risks of major technological transitions justify public intervention to accelerate innovation adoption, even when private capital is available.
Why this clip
Provides a clear framework for understanding when and why public capital intervention makes sense in venture investing beyond traditional market failure arguments.
What they said next
Why 45% of government-backed startups can't raise private funding
37:23 - 26s · market insight
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