Is risk is tied to the public market in venture capital?

Yes, risk in venture capital is often tied to the public market, as economic conditions and market sentiment can influence investor behavior and the availability of funding. When public markets are volatile or declining, venture capitalists may become more cautious, leading to decreased investment in startups. Additionally, the potential exit strategies for venture-backed companies, such as IPOs or acquisitions, are closely linked to public market performance, which can affect the perceived risk and valuation of those investments.