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The Fed isn't giving money directly to the VCs (atlest that I know of). The fed is keeping interest rates low on Treasury Bonds low. The rationale for this is:
by jklein11 9y ago
The Fed isn't giving money directly to the VCs (atlest that I know of). The fed is keeping interest rates low on Treasury Bonds low. The rationale for this is: if investors get a small return on a riskless investment, they will be willing to take bigger risks for less rewards. Theoretically this should increase the investment in Venture Capital firms.
- riku_iki 9y agoSure, plus there is another money flow: low long term borrowing costs, with borrowers looking for a way to invest with higher return. But in both cases these people (investors, borrowers) will want to get their money back eventually..