Wednesday, November 19, 2008

Hope lies in Venture Capital

Redwood City California -- The decisions of venture capital and angel investment could be a significant factor in how long the current recession lasts worldwide according to Gary Schlossberg, vice president and senior economist for Wells Fargos, Wells Capital Management.

Speaking today at the Economic Forecast meeting of the Redwood City/San Mateo County Chamber of Commerce, Schlossberg ticked off a list of factors that will determine how long and deep the recession will go, including consumer spending, government stimulus packages and mortgage renegotiation. But he also called out the role of private investment in the form of entrepreneurial support as a key factor.

"There's a lot of money available for investment, but the channels are currently choked off." Schlossberg encouraged the businessmen and investors in the 200+-person audience to start the process of getting new businesses off the ground.

Lou Covey, CEO of Footwasher Media and an organizer of the VComm Venture Faire, said after the event, "One of the few established banking entities that is doing well in this economy is giving us a roadmap to recovery and prosperity. This is exactly the reason we chose to launch our event at this time. The financial introspection and reserve of the past two years needs to be put aside. It's time to get back to work."

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