McLean, VA (PRWEB) September 21, 2009 -- Jonathan Aberman, Managing Director of Amplifier Venture Partners, today released "The Decline of the United States Venture Capital Industry: What the Federal Government Should Do About It." The White Paper discusses the current problems and challenges to the private venture capital model and offers specific policy recommendations to the Federal Government to address these challenges.

In the White Paper, Mr. Aberman argues that addressing the shrinkage of the private venture capital industry and the loss of countless experienced company builders is a matter of urgent national economic policy. The venture capital industry is becoming configured to make larger investments in less innovative companies, as it is driven towards making less risky investments to satisfy the current investment preferences of its institutional investors. As the venture capital industry is moving away from more speculative investments, particularly early stage investments and investments in emerging technologies, the United States economy is losing a primary driver of technology commercialization.

As noted recently by the National Venture Capital Association, more than 21% of the 2008 United States GDP was provided by venture capital backed companies. Mr. Aberman argues that government action to promote the formation of early stage focused venture capital funds, and actions to promote a closer career progression between government and private sector technology commercialization are necessary for the US to continue to benefit from venture capital's important role as a driver of economic development.

"I am not suggesting a VC Bailout" said Mr. Aberman, "the market should continue to reward and punish investors on the most important criteria - do they provide profits for their investors. However, we need to recognize that at this moment in our nation's economic development we need more early stage capital and experienced company builders, not less. We should act in ways that would be consistent with the private market and provide the ground work for the next generation of industrial development and entrepreneurs."

"This White Paper is a very important contribution to the discussion of the role and importance of the private venture capital industry with some concrete solutions to the current crisis," noted Don Rainey, General Partner of Grotech Capital Group. "I hope that Mr. Aberman's thoughts provide a basis for policy makers and the venture community to work together to address these issues."

For a copy of "The Decline of the US Venture Capital Industry: What the Federal Government Should Do About It" visit http://www.amplifierventures.com/whitepaper