Mr. Bussgang Goes to Washington: Entrepreneur, VC and PBLN Co-Chair Checks in about the High Stakes for Innovation in the Nation's Capital

Jeff Bussgang is a General Partner with the Boston-based venture capital firm Flybridge Capital Partners. Prior to joining Flybridge, Jeff was a successful entrepreneur. He recently authored a book called Mastering the VC Game and he writes a popular blog at www.seeingbothsides.com. Jeff is also a founding Board member and Co-Chair of the Progressive Business Leaders Network, which is having its 3rd Annual CEO Summit in Washington, DC May 11th on Business Leadership and Public Policy: Inventing a More Sustainable Economy. PBLN Executive Director Andrew Tarsy caught up with Jeff recently and the following is an edited transcript of that conversation:

PBLN: Jeff, you are an entrepreneur, a VC, a business leader who gets involved in policy issues, and most recently an author. And you are also involved in leading the PBLN. Do all these things connect?

Bussgang: I have a few themes in my life that I've maintained an interest in over many years. My father is a role model for me - a business leader, entrepreneur and community leader (town meeting member) - after coming to the US as a Holocaust survivor after the war. Those themes of fighting for democracy, civic engagement and giving back have always been harmonious for me alongside my business-building.

PBLN:  You are also a dad - do your kids know how all your interests connect and why?

Bussgang: Yes. I tell my kids that as a venture capitalist, I’m in the business of giving money to great inventors. If their invention is successful, they give me the money back plus some. If not, they lose the money. My kids see me and my wife and our civic involvement at our synagogue, various non-profits we are involved with and in the community and see how we integrate it into our lives. I suppose they’re “getting it” through osmosis, just as I did as a kid.

PBLN:  Jeff, you are going to Washington next week for the PBLN Summit - what are you looking for out of that day with Congressional leaders, policy wonks, etc.?

Bussgang: I’m a big fan of Stephen Covey’s Habit 5: Seek First to Understand, then to be Understood. I am looking to be educated on the key policy issues of the day by the experts in Washington DC as well as the experts amongst my peers at PBLN (who are always far better informed than I am!). Then, I hope to lend a small hand in helping advocate for pro-business, free market-based, progressive policies.

PBLN:  What are the key public policy changes that you think would widen the opportunity for innovation by entrepreneurs?

Bussgang: First, keep capital gains taxes low. Second, continue to invest heavily in infrastructure, such as broadband, wireless, education, high-speed trains, NIH and advanced research in energy. Third, allow aspiring entrepreneurs to get visas more easily. Supporting the Start-Up Visa movement is critical in this regard. Every talented immigrant who wants to start a company and can secure funding should be welcome to create jobs and build their innovative businesses here.

PBLN:  How do you react to cap and trade proposals to address energy/climate change?

Bussgang: If implemented correctly, I think cap and trade represents an excellent market-based approach to handling the externalities of carbon emissions. If implemented poorly, it will be a pork-laden, compromise bill to appease special interests. I’m very interested to hear more about it to understand which direction it’s heading in between these two extremes.

PBLN: Some say that entrepreneurs have no time to wait or work for policy changes. On the other hand many of them seem to be saying now that government action [major policy changes] on climate, energy, regulation of certain chemicals, healthcare policy (especially Health IT) and more will drive government dollars and demand in ways that are huge for them. Your thoughts?

Bussgang: Smart entrepreneurs don’t have time to wait, but when they see the government take action, they jump all over it. One of our portfolio companies, Patient Keeper, is a leader in hospital IT and physician software. When they saw the government pass the computerized physician order entry (CPOE) laws, they jumped into action and now have the leading product on the market. Entrepreneurs are nimble. Government is not. But when government takes action, it creates a massive wave of opportunity for nimble entrepreneurs.

PBLN: You played a hands-on role as a member of Massachusetts Governor Deval Patrick's Readiness Project Finance Commission. Much of the work your group did resulted in some major reforms in the state. What are you looking for from the Assistant Secretary of Education Peter Cunningham and the highly regarded Senate education committee staffer Lindsay Hunsicker (from the Office of Senator Mike Enzi (R-WY)) who will be speaking at the PBLN Summit? What is the nexus from school reform to the economy for you?

Bussgang: Race to the Top has been a great catalyst for states to push for reforms. Massachusetts stepped up in that regard. I’m looking to learn why we didn’t get the grant, scored so low and what we need to do to move the ball forward. I recently watched a compelling movie called 2 Million Minutes, which chronicles how US teenagers spend their 2 million minutes of high school as compared to Chinese and Indian teenagers. We need to make sure our kids our getting the absolute best chance they can at becoming world-class global citizens and not get outclassed by their peers in other countries.

PBLN: Thank you Jeff. See you on Capitol Hill!

Learn more about pbln and register for the Summit at www.pbln.org

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According to Advertising Age Communispace is one of the fastest growing marketing and technology companies in the country, with a Blue Chip client list that would make a Madison Avenue giant jealous. A pioneer in creating online communities to help marketers deeply engage customers, Diane helped found Communispace in 1999 and hasn't looked back.