The same place as the rest of the money: misc investments that are now worth a lot less than a few weeks ago. Or did you think that cash was sitting in some ban

The same place as the rest of the money: misc investments that are now worth a lot less than a few weeks ago. Or did you think that cash was sitting in some bank account happily inflating month on month? To make that cash available, they'd have to sell shares, bonds, options, etc. that that money is currently invested in at a loss. The better strategy is to wait for a recovery. That might take some time. Selling at a loss to make risky investments in startups is not a good plan. The even better strategy is to invest whatever cash there is into those things more likely to recover quickly rather than sketchy startups as there are likely quite a few undervalued things in the market that could recover by a sweet 10-20% in the next month. And since that money technically belongs not to the investors but rather conservative entities they represent (like pension funds) they are going to have to do conservative things in times like this. Hence the temporary lack of liquidity for startups.