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VCs are in a particular sort of situation though where those assets getting cheaper strongly impairs their way of producing returns for their investors. Depend
by majormajor 4y ago
VCs are in a particular sort of situation though where those assets getting cheaper strongly impairs their way of producing returns for their investors.
Depending on when valuations start to slide, and whether or not they ever start to accelerate like they did at the latter half of the last decade, they could get called in to a lot of hard conversations about "if you're not using my money, give it back."
If you're a VC you want to be raising new funds from your investors for the next wave of startups, you don't want to be unable to find promising investments for your current funds. You're not gonna be able to raise again in the future in that case.
AKA a "zombie."