Government Shutdown: Silicon Valley Stays Neutral - NBC Bay Area

Government Shutdown: Silicon Valley Stays Neutral

Tech companies largely unaffected by government drama.



    Government Shutdown: Silicon Valley Stays Neutral
    Web sites are shutting down -- but not in Silicon Valley, which is humming along as if the shutdown didn't affect them (turns out it doesn't, really).

    Government shutdowns? That's so 1.0.

    The deadlock in Washington, D.C. over the budget -- which has in turn affected some markets, as the government shutdown enters its second week -- has not made much impact in Silicon Valley, where firms and people have proven unaffected by the mess in Congress, according to the Washington Post.

    This means that unlike on national security or patent law, Silicon Valley firms have proven willing to ride the shutdown out and not get involved.

    No tech groups signed onto the Chamber of Commerce letter urging the government to come to its senses, and the Consumer Electronics Association has been largely "silent," the newspaper reported.

    Things might be different if tech firms relied on banks for money. But they don't: venture capital and private equity make technology move, and these funds are largely unaffected by lending behaviors, the newspaper reported.

    Start-ups may also move too quickly to worry about a government mess -- or too quicky to care.

    Tech has proven able to affect change in policy -- such as with immigration and with copyright laws. Will they get involved with the shutdown -- eventually? Maybe not.

    One investor said that if you asked 10 his companies "what they think about the debt crisis, what do they think abotu the government shutting down, they wouldn't have any idea, or it wouldn't affect them," according to the Post.

    "Most of them have nothing to do with government," he added. "Venture capital is about the here and now."