In other news, "Suits Make a Comeback!"[0].
Investors can't just sit on money. They have to get returns, and that means that they have to put capital to work.
Investors can't just sit on money. They have to get returns, and that means that they have to put capital to work.
Also, don't forget the money's all locked up for multiple years.
expectation of yield within x-1 years for investments in year y+1 over expectation of yield within x years for investments year y
And that's what portion of value waiting gets you. If the yield in that first year is negative, they're going to wait no matter what. 1x is better than (<1)x.
Although then you get into how VCs get paid, mostly on the upswing... you're probably right. 1x gets no carried interest.
"SVB counts among its customers 65 percent of U.S. VC firms and half of all VC-backed companies."
That's the only complimentary sentence about any of the firms mentioned in the article. It's also a bit out of place - the article reads just fine without it, and that information isn't needed to make the article's point.
Plus, the tags at the bottom are "Silicon Valley Bank" and "Money".