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For starters, the problem in Silicon Valley isn’t a lack of capital. With Russian investors promising to fund an entire class of startups sight unseen and Sequoia Capital telling its whole portfolio to raise money now, there is, by common consensus, more capital than we need. Sometimes it is hard to look into the seeds of time and say which grain will grow and which will not, but many, many grains are getting plenty of water and sun. And since interest rates on government debt are at historic lows, the government is hardly competing for resources with entrepreneurs.

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