What was unmentioned in the article, and here in the comments as of yet, is ZIRP, Zero interest-rate policy.[1] Central banks around the world have made it eas

What was unmentioned in the article, and here in the comments as of yet, is ZIRP, Zero interest-rate policy.[1] Central banks around the world have made it easy to borrow money almost for free. That money must be invested somewhere, because keeping capital in the bank has negative interest rates in many countries! That's a big reason why there's so much venture capital sloshing around. What else are they going to do with it? Buy a German 10 year Bund that returns 0.18% per year, or maybe a US Treasury that's about 2%? Why not take a chance on the next startup instead? After all, maybe Tinder for Cats is the next big thing? [1] https://en.wikipedia.org/wiki/Zero_interest-rate_policy https://en.wikipedia.org/wiki/Zero_interest-rate_policy