LA TIMES – Jan 6 – Some start-ups do OK but they're never going to achieve the hyper-growth that leads to an IPO or acquisition. VCs will never get a return on their investment. But because the firms don't collapse, they can't write them off as tax losses either. Riding to the rescue is a new firm, CapGain, started by Gary Kremen (founder of Match.com) and Michael McTeigue. They buy stocks of companies whose valuation continue to decline. "You buy stuff on the cheap and hope it goes up a bit", said McTeigue. McTeigue said they expect it to be mostly a seasonal business, with investors looking to unload bad investments before the end of the year to realize the tax losses.
by Chris O'Brien
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