today i ran an experiment that exposed what i believe to be one of the biggest threats to america right now
i attempted to raise funding for a manufacturing company from silicon valley VCs and from PE funds
the VC gave me 5 minutes on zoom and said this was "more of a PE deal" because it was "too capital intensive", and they had no comps to benchmark it to, so they left to hop on another zoom and give an AI saas company a $50M pre seed
the PE fund had no one to answer. i tried two others same thing. finally got a hold of the fourth which said they "don't fund r&d" and "we buy ebitda", and suggested i talk to VCs about de-risking the tech first
so i call back the VC and ask "what about tesla or spacex?" and they said "those aren't replicable, you're not elon" while funding the 47th AI email assistant
this is the reality: america is being priced out of its own industrial future while companies get stuck in the valley of death between VC and PE
this is why 50% of our founders don't care anymore about building hard tech / manufacturing, because VCs want guilt free 100x returns from the saas casino, and pe wants existing cash flows
if we want to support reindustrialization and domestic manufacturing, we need investors who understand the middle ground exists, and real tech can enable massive empires
otherwise the factories of tomorrow won't be american, they'll be chinese. but at least we'll have another b2b saas platform with a 40x revenue multiple