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hot cheap money does it. Wait for the FED to raise interest rates. I.e. why to invest in a startup when just keeping cash in a bank deposit gives you 7-10% retu
by LekkoscPiwa 13y ago
hot cheap money does it. Wait for the FED to raise interest rates. I.e. why to invest in a startup when just keeping cash in a bank deposit gives you 7-10% return?
I read somewhere that the average return of VC companies hasn't been higher than traditional investments for the past decade. Wow! VC is high risk, should be high return. It is high risk with blue chip stock return.
This type of anomaly still functioning is possible only because of the low interest rates environment we have had for the past 15 years. Cheap credit enables this. People being forced to invest as they can't just keep money on 1% "savings" bank accounts helps that too. Once the hot air is out, it'll all go back to normal.