The search for yield... a predicted consequence of 7 years of zero percent interest rates. Last time around it was investors seeking yields in low-quality mortgages. This time, they're investing in low-quality Silicon Valley startups. https://en.wikipedia.org/wiki/Austrian_business_cycle_theory
Considering that central banks are creating a new norm of negative rates around the world, I doubt that foreign investors who are there to seek yields will go away anytime soon.
I actually wasn't aware of it being either street slang or associated with The Wire. It seemed a pretty familiar term to me. A few different online sources suggest it started out as military slang to mean "re-enlist."
I remember watching the episode of Simpsons where the Navy produced a series of music videos with subliminal messaging back when it first came out (apparently in 2001).
Of course it will. Investment will ebb and flow in cycles, just like it always has. Back in 2001 was a massive pullback in VC investment, and we very well may see something similar if there's a catastrophic downturn in the tech economy.
But it will always come back. There is no place like Silicon Valley because of the critical mass of talent and greed. There are far too many greedy people who want to make money that will always bring in the money.
While the big "tourists," eg Fidelity, are investing, they aren't investing in the early stage froth. That's not to say Uber & co's valuations haven't been high, but I've found most investors to be here. Many of them have been here for quite some time too.
This article is a whole lot of speculation without much substance. What I'm most curious about is LP's effect on VC fund distribution. The big funds are still raising big funds, General Catalyst as an example this week. They still need to allocate that capital.
To answer my own question : I guess they'll be allocating it to the highest growth / most safe opportunities though. And at better valuations.
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[ 3.0 ms ] story [ 67.2 ms ] threadWhen did this urban/inner-city drug culture term become mainstream?
(for the etymology geeks here, El-Erian means "of the aryans", no not the nazi aryans, the original aryans)
http://dictionary.reference.com/browse/re-up
I remember watching the episode of Simpsons where the Navy produced a series of music videos with subliminal messaging back when it first came out (apparently in 2001).
https://en.wikipedia.org/wiki/New_Kids_on_the_Blecch
Re-up as a term to re-enlist or re-sign up has been around for at least 15 years.
But it will always come back. There is no place like Silicon Valley because of the critical mass of talent and greed. There are far too many greedy people who want to make money that will always bring in the money.
This article is a whole lot of speculation without much substance. What I'm most curious about is LP's effect on VC fund distribution. The big funds are still raising big funds, General Catalyst as an example this week. They still need to allocate that capital.
To answer my own question : I guess they'll be allocating it to the highest growth / most safe opportunities though. And at better valuations.
After the dotcom bust, there were many cases where VC funds just returned uninvested money to LPs, as it was evident that the IPO market had dried up.