3 ms·
The VCs don't care but their limited partners who supply the money certainly do.
by disgruntledphd2 3y ago
The VCs don't care but their limited partners who supply the money certainly do.
- hackernoteng 3y agoCorrect. If risk free return is 5% there is less need to take more risk on risky VC or private equity bets. Those allocations would necessarily be smaller overall. In addition the same effect on term sheets - the VCs will expect MORE return on their money for taking the investment risk which will be reflected in the terms.