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A comment on Startups are pummeled in the ‘great unwinding’. Parent comment

Re:Startups are pummeled in the ‘great unwinding’ by vl on Saturday April 04, 2020 @07:13PM (#22782274)
> Pre-crisis startup funding was largely decadence enabled by cheap money.

Arguably with current rates we are going to have cheapest money ever possible. On top of that a lot of traditional investment vehicles are contracting.

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Re:Startups are pummeled in the ‘great unwinding’ by hodgesrm on Saturday April 04, 2020 @10:48PM (#22783357)
It's a fair point but I think that the key issue is different. VC funds are a kind of equity investment; the question is whether they are actually delivering results. In the case of some of the top-notch US funds I would guess the answer is yes and will continue to be so.

On the other hand large funds like SoftBank are clearly under-performing. Cracks in that model were already appearing prior to Covid-19. So yes, interest rates are low, and equities should benefit in general. However it does not follow that VC investment funds are overall a good bet. To make that argument you would have to trade off against alternatives like real estate, more traditional industries, on-shoring of supply chains, etc.

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