peHUB First Read

Cofee* Alan Patricof and Eric Dinallo take to the NYT Op-Ed page, arguing against proposed rules that would require VC firms to register with the SEC. I agree, in general, but also have a nitpick about the P4 lead:

“Venture-capital funds deal solely with privately purchased equity securities in start-up companies, which are not traded in public markets.”

Not only do some of these companies, if successful, ultimately create public securities that VC firms hold, but more and more VC firms are making investments in already public companies. Just last week, for example, Tallwood Venture Capital agreed to acquire what could become a 45% stake in Ikanos Communications. Again, not saying this negates the authors’ larger point, but I do wonder if Patricof/Dinallo would argue a firm like Tallwood should indeed be required to register…

* Bloomberg: Leverage rising on Wall Street at fastest pace since the credit squeeze began two years ago.

* Morning Call: U.S. futures point lower as commodities retreat, European shares drop, the Nikkei slips on strong yen and Chinese shares dive 6.7 percent.

* Non-profits test out analytics software for social investing.

* Deloitte: Emerging markets private equity is down around 60% between Q3 07 and Q1 09. Around 47% of investors expect the pace to pick back up, while 40% expect a further decrease.

* Dave Shepard of VC-backed Sequoia Communications, which shut down earlier this month: “I think the venture-backed model for semiconductor startups is broken. The complexity of these chips has just gotten so high, it just takes so much money to fund a startup nowadays, that to the VCs, it’s just not worth it.”

* Angel investor Chris Sacca is raising a $5 million VC fund called Lowercase Capital.

* Mary Shapiro: “We need significantly more money.”

* Matthew Goldstein: “Use the anniversary of the AIG bailout to set a hard-and-fast deadline for dismantling the insurer and getting the taxpayers’ money back.”

* Jonathan Weber: “You can use Facebook and Twitter to promote your business, but do it gently.”

* John Tamny: Baseball cards and the current economy (count me among those thinking Tamny’s comparison is a stretch, but it’s being included here largely due to my childhood obsession with baseball cards).