Having read your article on venture capital financing, I did not learn anywhere in your "special report" exactly "how the venture capital boom is 'leading to disaster.' " As a principal in a venture capital fund currently under formation, I concede that venture capital financing is not the ideal path for every new or developing company to follow. I respectfully submit, however, that your cover language unnecessarily suggests that all venture capital financing is suspect and inappropriate and that alternative means of capital acquisition are always preferable. No one knows the accomplishments of the venture capital industry over the past two decades better than the editors of your publication.

A recent famous television commercial asked the rhetorical question, "Where's the beef?" With regard to your article, I ask, "Where's the disaster?"

EDITOR-NOTE:

When we publised "Why Smart Companies Are Saying No to Venture Capital" (August), we anticipated that the article would generate much response fom both entrepreneurs and venture capitalists. The response, as reflected in the letters that follow, has shed some additional light on a very important subject. We trust that this is not the end of the discussion about the role of venture capital in building companies, and we encourage other readers to inform us of their experiences.