Thursday, July 5, 2012

There is much negative talk coming from the political left and the Obama campaign machine regarding Mitt Romney, Bain Capital and venture capital firms in general.

The Obama ads accusing Bain and Mr. Romney of being ruthless and killing jobs have gained some traction, primarily because many people have little understanding of the important role investment capital plays in business or why owners of companies go to venture-capitalist firms for help.

Entrepreneurs building or trying to save a business have very few places they can go for help. They can use their personal funds, borrow from banks (if the banks are willing to lend to them) or go out to the marketplace for angel investors, who take a stake in the business in exchange for a capital infusion. Many times, without a capital infusion the business would die. Venture-capital firms make very risky investments that banks or other lenders would never make. Often they are the last chance for a business to gain financing and survive.

When you look at the record of successes and failures of Mr. Romney and Bain Capital, the successes are significant. They have had their failures, but on balance, they saved and created many thousands of jobs.

Mr. Romney should be lauded for his success at Bain Capital. Instead, the liberal side has tried to create a monster that doesn’t exist.

CHRISTOPHER S. MOODY

Gaithersburg

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