Re:Y Combinator narrows current cohort size by 40%, citing d...
by JumpCrisscross on Wednesday August 03, 2022 @08:43AM
(#32330924)
> Is this just people being risk averse right now?
VC historically yielded 12 to 18% [1]. There is a lot of variance in those figures, with the crypto + Clubhouse guys coming in below ten, savvier funds still posting 30%+ and SoftBank + Tiger losing money.
So when a bond is yielding 5 pts [2] above the 10-Treasury’s 2.75% [3], more people will chose 7 or 8% with the guarantee of the issuer’s assets over maybe twenty maybe zilch.
VC historically yielded 12 to 18% [1]. There is a lot of variance in those figures, with the crypto + Clubhouse guys coming in below ten, savvier funds still posting 30%+ and SoftBank + Tiger losing money.
So when a bond is yielding 5 pts [2] above the 10-Treasury’s 2.75% [3], more people will chose 7 or 8% with the guarantee of the issuer’s assets over maybe twenty maybe zilch.
[1] https://www.nexitventures.com/site2015/wp-content/uploads/20...
[2] https://fred.stlouisfed.org/series/BAMLH0A0HYM2
[3] https://home.treasury.gov/resource-center/data-chart-center/...