Brian Grey Blog

Ok, I am supposed to be on Spring Break vacation with my family. Acutally, I am on Spring Break with my family, but since it’s been downpouring rain all day and my wife and daughter’s have parked themselves on the couch in front of the movie “Mama Mia”, I couldn’t help but grab today’s WSJ. I mean let’s be serious, my wife suckered me in to seeing this movie when it was in the theaters — no way I’m gonna sit through Pierce Brosnan’s singing a second time!

And what strikes my interest in today’s Journal? Well for starters the Opinion piece by James Freeman, “Is Silicon Valley A Systemic Risk?“, that tells a little tale about how now that Treasury Secretary Timothy Geithner is fully engaged in regulation mode, he is now targeting the Venture Capital sector.

You’ve got to be kidding me — is this where Obama’s Treasury wunderkid is going next?

How about having Geithner draw me a picture showing how venture capital investments over the last decade were in any way tied to the prime mortgage lending induced housing bubble or the speculative financial derivative game being played right under Timmy’s nose in NYC?

I don’t think there’s a drawing out there that would show this, but apparently we now need to regulate VC investments and protect willing investors in VC funds from having them all turn in to mini Madoffs. Wow, now this is starting to get a little scary.

From where I sit in Silicon Valley here’s what I see — and don’t see — daily:

I see startup companies being led by entrepreneurs — some as small as 2 guys working on code to some with more than 30 or 40 employees working to hatch an idea or build on a business that is operating in it’s early days of trying to fine tune it’s product and acquire a dedicated customer base.

I don’t see companies who are taking on debt (and if they do, it’s a working capital line of credit from Silicon Valley Bank as Freeman’s article points out) nor do I see companies enlisting support from politicians or politically charged entities like Freddie Mac, Fannie Mae or Moodys.

Why would Obama’s administration think regulating an investment sector that operates as efficiently as the VC model, and one that actually spurs innovation and new job growth in industries where the U.S. can lead (see “U.S. auto industry” for the opposite example here) is a smart use of the Treasury Department’s time.

How about Geithner’s gang stay focused on cleaning up the mess created by the banks, insurance companies and other real ponzi schemes, and let the VCs do what they do best: take on the risk associated with creating companies and jobs.

Ok, now back to my Spring Break!

Well, all good things must come to an end they say — and for my family that means the end of a very enjoyable 3 years living in Pacific Palisades.

My wife and I decided now was the time to move back to SF — to be closer to more family (notably hers) and to raise our kids in the City (ok, for you NY’ers I know SF isn’t really “the City”, but that’s what we call it in these parts).

As part of my move back to the Bay Area, I’m turning the page as well on a new chapter professionally. After a pretty long haul in various business and operating roles in digital media, I’m fortunate to be joining Polaris Venture Partners as an Executive-In-Residence (EIR) based in SF where I can help them increase their Silicon Valley presence. Check out PaidContent.org’s post of the release.

So we’re back in SF, connecting with old friends, and in my case reconnecting with many friends from the Valley. Hope to see you soon!