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Why Today's Bullish Economy Is Bad for VCs, But Good for You

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This story appears in the May 2014 issue of Entrepreneur. Subscribe »

I can't wait for this economy to take a dive. Yep, you heard me. That's because my industry, venture capital, depends on it. There is nothing that increases the number of breakthrough startups to invest in like a miserable economic downturn. In fact, nearly 60 percent of the Fortune 500 companies were launched during a down market, according to the Kauffman Foundation.

Bear with me as I explain why this makes sense and is good for you. When everyone is flush with cash and feeling secure in their gigs, inertia prevails; there's no reason to strike out on one's own. In good times, top talent gets compensated accordingly; hell, everyone has a better-than-even chance of getting a raise.

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