What the Hostess story will hopefully teach the always gullible public, is that nothing is ever black or white, and there are numerous shades of gray in every story: even one in which an "evil" PE firm is unable to come to resolution with labor unions, despite the man in charge of it all being a prominent democrat. Because when it comes to money other things such alliances, ideology and certainly politics are always, always, secondary. Sadly, ever more Americans will be forced to learn this lesson the hard way.
In case anyone hasn't worked with venture capital, they need to
triple their money within 5 years in order to pay off their investors and still have enough capital to cover losses and incubate new opportunities.
VC companies have investors, most VC investments lose money, and it takes a LOT of money to start or turn around a company. High risks, sometimes high rewards.
With the capital tax structure, profits require moderate taxes in perpetuity and losses buy you nothing in terms of a tax break.