From Dealroom · · 50s
Dollar Built Silicon Valley
US venture capital dominance stems from foreign money flowing into US Treasuries, says researcher.
In brief
US venture capital dominance stems from foreign money flowing into US Treasuries, says researcher. US venture capital scale is driven by foreign capital flows into US safe assets, not culture or regulation. Originally reported by Dealroom.
The overflow mechanism
Nicolas Colin, head of research at Vsquared Ventures, says US venture capital dominance comes from foreign money flowing into US Treasuries and blue-chip stocks.
Foreign holdings of US debt
Foreign holdings of US federal debt rose from 10% to 29% of GDP between 2001 and 2024.
Pension asset allocations
Alternative-asset allocations in US public pensions climbed from 9% to 31% over the same period.
How the mechanism works
Foreign demand for safe US assets compresses yields, pushing pension funds toward riskier investments like venture capital.
The headline
US venture capital scale is driven by foreign capital flows into US safe assets, not culture or regulation.
