Correct. If risk free return is 5% there is less need to take more risk on risky VC or private equity bets. Those allocations would necessarily be smaller ove

Correct. If risk free return is 5% there is less need to take more risk on risky VC or private equity bets. Those allocations would necessarily be smaller overall. In addition the same effect on term sheets - the VCs will expect MORE return on their money for taking the investment risk which will be reflected in the terms.