Re:90% of the billion dollar unicorn startups are in trouble
by kolbe on Thursday January 21, 2016 @10:17AM
(#10945705)
It's just one more straw. I don't think there's a single class of investment in any pension fund that would alone make a bailout necessary. But I wouldn't be at all surprised to hear that a tech sector bust would cost several funds upwards of 10%. Add a few more failures of that kind to the mix, and we'd be talking bailout.
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Re:90% of the billion dollar unicorn startups are in trouble
by whatok on Thursday January 21, 2016 @10:41AM
(#10945906)
How are you coming up with 10%? Do you know what the typical allocation to VC for a pension fund is?
Re:90% of the billion dollar unicorn startups are in trouble
by kolbe on Thursday January 21, 2016 @10:53AM
(#10946012)
VC and PE? 5%. But add to that exposure to the publicly listed tech sector, for aggressive funds, that could be as high as 20%. Then there are secondary effects like a downturn in Bay area real estate.
Re:90% of the billion dollar unicorn startups are in trouble
by whatok on Thursday January 21, 2016 @11:03AM
(#10946096)
PE is going to have completely different dynamics as far as industry allocations. I would love to see an example of a pension fund with a 20% allocation to tech. And if you're talking about a federal bailout, this is likely going to be a public pension fund which makes it even more unlikely.