Shifra Ansonoff presents research on how inflation affects alternative assets. VC funding shows almost no statistical link to inflation, while leveraged buyouts decline more clearly because they rely on cash financing. Rising interest rates during inflation push investors toward safer, interest-bearing securities instead.
Inflation's interesting. Do you want to talk a little bit about that? Yeah, absolutely. Yeah, please. So slide 10, this talks about venture capital. So we've run empirical studies to measure the impact of inflation on various asset classes and alternatives. What's interesting is we didn't see a strong statistical significance at all with VC and inflation. We see it more with private equity on the leveraged buyout side, right? 'Cause the cost of cash But on the VC side, rather, we see the aftermath. So in an inflationary environment, governments will raise rates. And at that point in time, investors tend to allocate away from the riskier asset classes to interest-bearing securities, which makes sense. As rates go up over time, we see that the aggregate capital raised goes down, although it's not a very strong relationship, as you can see there. It shows a similar concept, but with the number of deals that have completed
