Ask HN: What are the interest rate increase effects on VC?

2 points by sudo_bang_bang 10 years ago | 2 comments

If the Federal Reserve raises interest rates, what will the effect be for startups trying to raise money?

quantisan 10 years ago |

Depends on how much of the increase. If it's small increment, businesses have factored that in. If it's more than expected, then opportunity cost would increase thus making it harder to get money. http://ig.ft.com/sites/when-rates-rise/#faq-are-businesses-r...

baccredited 10 years ago |

I've invested in over 100 startups. Here's how it will change MY investing: not at all. If the rate kept rising and rising I might shift some startup dollars to bonds or whatever (if the return beat 7%).