Thomas Friedman proposes giving a billion dollars each to 20 different VC firms to invest in start-ups. His rationale is that it stands a much greater chance of success than just throwing more money at the Big 3 Auto makers.
"G.M. has become a giant wealth- destruction machine — possibly the biggest in history — and it is time that it and Chrysler were put into bankruptcy so they can truly start over under new management with new labor agreements and new visions. When it comes to helping companies, precious public money should focus on start-ups, not bailouts."
Fred Wilson, one of the coolest and smartest VCs around (he gave me half an hour of his time to help me with business school project and he was the first one to tip me to Kings of Leon), responds that this would be a horrible idea.
I'm really curious as to what other people think about this one.
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