VCs attribute the “mild winter” to the low interest rates and also the huge
influx of capital from big funds, new funds, corporate funds & foreign money.
Low interest rate environment
Late-stage VC funds raising larger funds
Many new VC funds
Increases in corporate VC arms
Increases in Chinese money
Increases in Sovereign Wealth Funds
Increases in LPs making direct investments
Mutual funds and hedge funds 14%
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 VCs (N=115), 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”?