White Collar Capital

Wall Street Is to Blame for Crappy Startups

wall street e1300982985302 Wall Street Is to Blame for Crappy StartupsThe big bucks available for brainy folks willing to work on Wall Street is depleting the talent pool for startups according to a new report from the Kaufman Foundation authored by Paul Kedrosky and Dane Stangler.

The study focuses on the rate at which STEM graduates (Science, Engineer and Math) have moved into the world of finance.

It also looks at the negative feedback loop between a overripe financial sector and a lack of entrepreneurs. Without great companies to fund, the focus turns to complex financial products, the root cause, many believe, of the recent financial meltdown.

Of course, plenty of liberal arts students and college dropouts have gone on to found and grow incredible companies. Still, many of New York’s top angels feel Wall Street is the biggest impediment to the growth of the Silicon Alley scene.  “Competition in NYC isn’t other VCs, isn’t CA–it’s Wall Street,” wrote Chris Dixon recently.

 

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