tomtunguz.com · 2021-06-06
· 1824d
The Figures that Will Move the Venture Capital Market in the Next 3-5 Years
The article analyzes the inverse relationship between 10-year Treasury yields and venture capital investment, demonstrating a rectangular hyperbola pattern consistent with NPV valuation theory. As interest rates rise from historically low levels, the author predicts venture capital investment will decline over the next 3-5 years, though with a lag as venture markets respond more slowly than private equity to rate changes.
Metrics in this report
10-Year Treasury Yield
6percent
Year 2000 baseline
Total Venture Capital Investment
18.2billion USD
Year 2000 at 6% 10-year Treasury yield
Total Venture Capital Investment
200billion USD
Peak years following 2012-2014 rate decline period