Heat Death: Venture Capital in the 1980s: The importance of credit.
"The history repeats itself crowd thinks that that there must be a bubble sooner or later. “Now?” they constantly ask, “Is it a bubble now?” as if history has to repeat whatever was most memorable about the last time. History may repeat itself, but there’s an awful lot of history that this particular venture capital cycle could repeat. Below is a short history of venture capital in the 1980s, my interpretation and comparison to the ’90s and today, and some thoughts about what that means. It’s long. If you’re attention-deprived, skip to ‘1980s v. 1990s’, about four-fifths of the way down."
Inflation is always and everywhere a monetary phenomenon. Not just in the price of goods and services but also in assets. This also affects the performance of financial services companies. With more credits, the companies have an easier time. Venture capital and private equity are a big beneficiary of that.