That's interesting, I hadn't thought of the funds being inflationary pressure. I don't know quite how to model that, in a totally rational world it's something like:
expectation of yield within x-1 years for investments in year y+1
over
expectation of yield within x years for investments year y
And that's what portion of value waiting gets you. If the yield in that first year is negative, they're going to wait no matter what. 1x is better than (<1)x.
Although then you get into how VCs get paid, mostly on the upswing... you're probably right. 1x gets no carried interest.
expectation of yield within x-1 years for investments in year y+1 over expectation of yield within x years for investments year y
And that's what portion of value waiting gets you. If the yield in that first year is negative, they're going to wait no matter what. 1x is better than (<1)x.
Although then you get into how VCs get paid, mostly on the upswing... you're probably right. 1x gets no carried interest.