Startups can now get free office space with the internet in Durham, North Carolina if they just have a good idea (says who?). And Obama’s Startup America will hold its first roundtable there. Let the stampede for money and office space begin.
Do we really believe that we get better returns on innovation when we make everything free? Great karma, but without better innovation arbitrage deployed by VC this will simply spawn more of the subprime ideas that were responsible for generating minus 4.6% VC returns over the last ten years.
The focus should not be on making things easier for false positives, but to eradicate the number of false negatives, the real outliers. Nothing will change for the better unless we change the financial system that holds innovation hostage.