Real rates, the risk of interest rate movements influence investment decisions.

Usually this is linked to the cost of debt rising with higher interest rates and vice versa.

Although VC investments are typically funded using investors' own capital. Inflation also drives the investment decision, and this is linked to exposure to changes in prices or perhaps currency devaluation.

Credit default risk from lending to companies.

VC funds target early stage companies, which are unlikely to have built up and established track record to seek conventional credit or debt agreements.

However, it may be a factor to consider prior to investing.

For instance, it may impact companies when looking at working capital arrangements or perhaps any early loans made to the company, which may have higher interest rates owing to the higher risk of lendin at this stage of the company's life liquidity, holding illiquid assets, private markets are deemed illiquid assets, so they can be trickier to invest in.

Listed or public companies will have shares available on the stock market to purchase or sell and are deemed liquid for VC funds.

They're prepared to invest in illiquid assets and have built up the required skillset in their teams to be able to value and manage investments in this area.