VC Venky Ganesan on interest rates, diamonds, and quietly imploding startups

Yesterday, Federal Reserve Chair Janet Yellen told lawmakers that she’s not ready to hold interest rates low for much longer, but neither is she raising them right now.  Afterward, we talked about the news and what it might augur for startups with Venky Ganesan, a managing director at Menlo Ventures, the early-stage firm that led Uber’s Series B round (among its many other investments). Part of that chat, edited for length, follows.

TC: Are we round or does it sound from Yellen’s testimony like the money is going to keep rushing into Silicon Valley?

VG:  Yes, though it’s not about when the Fed raises interest rates; it’s when [the Fed] tells the market they’re going to do it. There’s a sea of liquidity that gets pushed out when interest rates are low and gets…

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