The percent of the US economy invested in startups is very low, so I disagree with the premise of this headline. If every startup went bankrupt tomorrow, what would that represent in GDP decline? If the US GDP is 18 trillion and the total VC investment in 2015 was around 58 billion, then if only last year's investments all went to zero, it would represent a decline in .3% of US GDP. Of course there is more capital at risk than just last year's investment so let's say last year's 58 billion is only 10% of total capital deployed. OK still just a 3% decline. I think what the article should highlight is how few high growth and cash flow positive startups there are, which I agree is a real problem. Maybe completely eliminate all fees and taxes for LLC formation?
I think that's the major premise of the article, that the slow growth is due to the fact that percentage of the US economy invested in startups is TOO low.
