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Is There a Future for Hedge Funds in VC?
The Fed cut interest rates, and did quantitative easing to get the economy out of the 2008 financial crisis. So in a world of kind of very low interest rates and quantitative easing hedge funds became a very tough strategy to do well at. In the meantime, super low interest rates are very good for tech. Why? Because startups are proposing to become profitable. And anytime the sort of promised profits are off in the future. A low interest rate is good because you're discounting at a lower rate... mathematically the value of a tech startup goes up when interest rates are lower.