LPs believe that a large correlating factor driving our industry is large pools of
capital chasing higher yields due to low interest rates affecting other asset classes.
Low interest rate environment
Late-stage VC funds raising larger funds
Many new VC funds
Increases in corporate VC arms
Mutual funds and hedge funds
Increases in Sovereign Wealth Funds
Increases in Chinese money
Increases in LPs making direct investments 21%
Note: Survey asked respondents to rate each item on a scale of 1-5. Above chart indicates percent of respondents that rated 4 (relevant) or 5 (most relevant).
Source: Upfront Ventures survey of LPs (N=82), Jan 2017
Q. In 2016 many investors warned “Winter is Coming” referring to a slowdown in venture markets. That slowdown
happened but was very short lived. Which of the following are relevant in influencing why “Winter was Mild”?