( CNN ) -- From 1984 to 1999 , Mitt Romney was in charge at Bain Capital , an investment firm that sought out small and sometimes troubled companies that , with careful management and Bain-provided cash , offered the chance for big profits . Bain , like many venture capital firms , invested in startups with the hope that the profits they made on the successes would outweigh the losses they incurred on the failures . Venture capital markets are simple things . Two groups of people who want to create new businesses come together . Venture capitalists have money but lack ideas . Entrepreneurs have ideas but lack money . When they get together , they trade and new businesses are born . We praise entrepreneurs as forming the foundation of a vibrant economy but vilify venture capitalists as money-grubbing opportunists . Entrepreneurs pour , sweat , blood and tears into their businesses , and we cheer them when it pays off . But we do n't see the risk venture capitalists take by investing in entrepreneurs , and so when venture capitalists strike it rich we assume the profit is ill-gotten gains . When entrepreneurs , empowered by venture capitalists , take new ideas and turn them into new products and businesses , job creation occurs . Venture-backed businesses generate a large number of good jobs because businesses that require the financial muscle of venture capital usually require the intellectual muscle of highly skilled and educated labor . In 2008 , more than 80 % of the employees in the software industry , 74 % of employees in telecom , 75 % in semiconductors , and more than half in networking and electronics owed their jobs to venture capital , according to the National Venture Capital Association . From the end of 2009 to the first quarter of 2010 , when the unemployment rate hovered stubbornly around 9 % , job postings by venture-backed companies rose 16 % . Venture capitalists wo n't always get it right though . Sometimes they 'll encourage companies to take on too much debt , or they 'll back ill-conceived business plans . When the venture capitalists and entrepreneurs make bad decisions , it hurts just as when the government makes a bad decision . But when venture capitalists and entrepreneurs make bad decisions , the people who are hurt are people who knowingly chose to invest , work for or do business with them . Venture capital brings together expertise and prudence . They are an experienced and hands-on bunch of people . They do n't simply hand over money . They want spots on the boards of directors that give them the ability to monitor what the entrepreneurs are doing and to provide advice . And because it is often their personal money on the line , venture capitalists tend to be careful in considering the partnership of potential customers and entrepreneurs . Most politicians do not have the business experience to offer meaningful and smart investment advice . No wonder the government stands to lose more than $ 500 million from investing in Solyndra , a California-based solar panel manufacturer that declared bankruptcy last year . If there is any chance of our economy returning to normalcy , it will require our politicians to start putting more faith in businesses . A good way to start is to stop vilifying venture capitalists . Join CNN Opinion on Facebook and follow updates on Twitter . The opinions in this commentary are solely those of Antony Davis .
Mitt Romney was in charge of Bain Capital , an investment firm , from 1984 to 1999 . He left the company and went on to run for president as a Republican candidate ( he lost ) but did not leave with his money. Venture capitalists are vilified as money-grubbing opportunists . Davis : Venture capitalists generate many jobs by creating new products and businesses . He says that politicians should put more faith in businesses , including venture capital markets .