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A comment on The "Tourist" Investors Flooding Silicon Valley With Money Will Go Home One Day.

Re:The "Tourist" Investors Flooding Silicon Valley With Mone... by tonydiv on Saturday February 06, 2016 @12:12PM (#11048563)
While the big "tourists," eg Fidelity, are investing, they aren't investing in the early stage froth. That's not to say Uber & co's valuations haven't been high, but I've found most investors to be here. Many of them have been here for quite some time too.

This article is a whole lot of speculation without much substance. What I'm most curious about is LP's effect on VC fund distribution. The big funds are still raising big funds, General Catalyst as an example this week. They still need to allocate that capital.

To answer my own question : I guess they'll be allocating it to the highest growth / most safe opportunities though. And at better valuations.

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Re:The "Tourist" Investors Flooding Silicon Valley With Mone... by w1ntermute on Saturday February 06, 2016 @12:22PM (#11048622)
> The big funds are still raising big funds, General Catalyst as an example this week. They still need to allocate that capital.

After the dotcom bust, there were many cases where VC funds just returned uninvested money to LPs, as it was evident that the IPO market had dried up.

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