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.

3 metrics· Cited 0× in the knowledge base ·Open source ↗

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