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People whose pensions are invested in VC funds would lose money. Don't forget that VC money comes in a large part from pension funds.
by S4M 11y ago
People whose pensions are invested in VC funds would lose money. Don't forget that VC money comes in a large part from pension funds.
- saryant 11y agoBut do pension funds actually have that much invested in that asset class? Around $48 billion went into VC in 2014 but in the US alone there is $18 trillion in pension assets.
- stillsut 11y agoGood point. But, a crash will lower the historical experience thus lowering future expectations for market yields. For pensions that need to hit a defined amount in the future, this means that have to come up with more capital in the present to hit the future target.