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What is this obsession on HN about "everything can explained with the end of ZIRP" (zero interest rate policy)? Really: Even with overnight rates at 5%, the re
by throwaway2037 3y ago
What is this obsession on HN about "everything can explained with the end of ZIRP" (zero interest rate policy)? Really: Even with overnight rates at 5%, the returns are still awful compared to even moderatly successful VC firms. And, I do not write this as a fanboi/gurl for VCs. (Many have shitty, immoral business practices to enrich themselves at the expense of hard-working non-executive staff.) Also, "end of VC-money": No such thing. They are practically bursting at the seams with uninvested money gathered during ZIRP.
- glenjamin 3y agoAre you suggesting that the macroeconomic environment in terms of funding and performance expectations of startups hasn't changed signficantly in the last few years? VC-money and ZIRP is a convenient shorthand for what's changed, neither are terms I think particularly encapsulate what did change, but I think it's very hard to argue that it's still just as easy to get a bunch of funding without a business model. (aside from in AI perhaps?)