We here at Sunstone Management know something that no one else seems to know – or at least they aren’t talking about it.
It’s pretty simple, really. And once I tell you, it will seem obvious.
Ready? The government is the key to the economy.
I told you it was obvious. But it is truly our answer to the “Zero to One” question, “what secret do you know that no one is talking about?”
This secret is true in a macro way, as the Silicon Valley Bank collapse and rescue demonstrated so recently. But perhaps the best macro example is what happened when we were visited by a worldwide pandemic.
The federal government’s Payroll Protection Program pumped $953 billion into the reeling economy in 2020 and 2021 to help businesses keep their doors open through COVID-19. Thanks to those loans, administered by our sister company American Lending Center and other financial institutions across the country, researchers from MIT and the Federal Reserve Board estimate between 2 and 18 million jobs were saved and are still in place today.
Looking at the Future
Local, state, and federal government will continue to be key to the economy – and especially our startup economy – going forward as well.
For example, last month Sunstone Management and the Sunstone Community Fund joined a group of other nonprofit and government agencies in an agreement called Launch Beach designed to bring 100 new startup companies to Long Beach in the next five years.
The initiative comes directly from new Mayor Rex Richardson’s Grow Long Beach economic plan, and the city government’s support to the relevant nonprofits is a key to the program’s success. Cooperation from the city’s Economic Development Department also will be key – key to the economy, and the success of startups matriculating through the Long Beach Accelerator.
Our economy is complex, interrelated and always in flux. Being aware that our government is the key can help us navigate the waters. It certainly is the reason we seek government partnerships whenever possible.
We’ll take a deeper look at the importance of partnerships next week. After all, that’s the Sunstone Way.
Imagine the future. Come build it with us.
###
More About Sunstone Management
Sunstone Management is a diversified private capital sponsor firm located in Southern California that invests in diverse early-stage technology entrepreneurs who seek to build great companies. We believe in the aspirational power of the American economy to attract and inspire investors and entrepreneurs from throughout the world. We deliver new and exciting opportunities for economic growth through the creation of innovative public-private partnerships, and our unique experience across government, education, and private sectors. Identified by Financial Times as one of America’s Fastest Growing Companies three years in a row.