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Ask HN: Where VC money comes from?
People claim that there is no risk of economic collapse coming from the VC bubble because this is private money. Is it though? Isn't the large chunk of money coming from pension funds and the like?
Companies, and thus valuations are private. So the investors have a lot of equity on their sheets which is basically vapor. What happens when all those companies which received double and triple digit millions in funding can't reach the valuations and all the startups selling to other startups close shop? Did you spend your grandma's savings on hipster clothes and Starbucks?