Technically, VCs are not loaning you money. They’re more likely betting on you. It’s true that maybe they’ll be more reluctant to place big bets, but as with everything in life the VC optimism is cyclical.
Sure it is not technically a loan. But it carries the same sentiment change when it blows up. People get extremely cautious, to the point of skipping some really good ideas. And not just those VC's that made the bets but everyone else too. Fear spreads just as effectively as hype.
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