# Dollar Built Silicon Valley

> US venture capital dominance stems from foreign money flowing into US Treasuries, says researcher.
- Title: Dollar Built Silicon Valley · Dealroom | Shortify
- Summary: US venture capital dominance stems from foreign money flowing into US Treasuries, says researcher. US venture capital scale is driven by foreign capital…
- Keywords: us venture capital, foreign holdings, treasury yields, pension assets, venture capital, startups, business, Dollar, Built, Silicon, Valley, Dealroom
- Source: Dealroom — https://dealroom.co/news/167770-the-dollar-built-silicon-valley-says-vc-researcher-and-it-cant-be-copied
- Published: 2026-10-28T19:02:15+00:00
- Read time: 1 min
- Topics: us venture capital, foreign holdings, treasury yields, pension assets, venture capital, startups, business
## 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.
## Key takeaway

US venture capital scale is driven by foreign capital flows into US safe assets, not culture or regulation.