During the ZIRP period, banks had to find places to invest their money, leading to a surge in venture capital investments as they sought higher yields.

When startups received large amounts of funding during ZIRP, it often led to a lack of innovation, as companies began to rely on spending more money rather than improving their products or services.

Once interest rates began to rise again, many investors who had entered the startup space during ZIRP exited quickly, leaving behind a volatile market.

The ZIRP environment created a false sense of security for many founders, who believed that simply having access to capital would ensure their success, ignoring the need for sustainable business models.

The ZIRP era saw an explosion of unicorns, with companies achieving billion-dollar valuations at an unprecedented rate, which diluted the rarity of such valuations.

The 1990s experienced a massive influx of capital into venture capital, with AUM skyrocketing from $12 billion to $220 billion in just four years.

The dynamics of venture capital are influenced by large pools of institutional capital, which often leads to overfunding and increased competition among VCs.

There were three types of venture capitalists during the zero interest rate period: those who believed there was no problem, those who knew it was problematic but participated anyway, and a small group that chose to hold onto their capital.

The 1980s saw a boom in venture capital, driven by increased institutional investment and the realization of high returns in the sector.