An article by Vivek Wadhwa (What Have VCs Really Done for Innovation?) claims the NVCA exaggerates the role of VCs in creating and driving innovation--to the detriment of entrepreneurs who often risk everything they own. He claims the NVCA is looking for handouts:
What’s behind the NVCA’s voodoo economics? Even though they vehemently deny it, VCs are looking for bailout money and tax-breaks. After spending so much time, energy and breath in the past decade arguing that government subsidies distort markets, now the wealthy, bloated VC community wants its own handouts.
Wadhwa also links to a story at BusinessWeek (Venture Capitalists Head to Washington) in which he is quoted. The article claims the NVCA is trying to tap the Small Business Innovation Research program. I don't generally trust BusinessWeek, but I must assume the quote by NVCA president Mark Heesen is accurate:
"This is an Administration with individuals who understand and respect technology," says Mark Heesen, president of the National Venture Capital Assn. (NVCA), the industry's primary lobbying group. "And from Obama on down, there is a view that innovation is key to getting us out of this economic situation."
On the contrary, the Obama administration is pushing primitive technologies such as windmills and lifestyle/preventative medicine, while dreaming up new ways to punish advanced technologies such as medical devices (re: AdvaMed) and the Internet ("Net Neutrality").