If you're feeling confused about the state of startup investing, join the club. Public company shares have been relentlessly hammered in recent months amid rising fears of a recession, yet startup funding seems as brisk as ever and, more surprising, to us, VCs are still routinely announcing enormous new funds as they have for many years.

To better understand what's going on, we talked this week with Index Ventures cofounder Danny Rimer, who grew up in Geneva, where Index has an office, but who now splits his time between London and San Francisco, where Index also has offices. (It just opened an office in New York, too.)

We happened to catch Rimer -- whose bets include Discord, 1stdibs, Glossier, and Good Eggs, among others -- in California. Our conversation has been edited lightly for length.

TC: This week, Lightspeed Venture Partners announced $7 billion across several funds. Battery Ventures said it has closed on $3.8 billion. Oak HC/FT announced almost $2 billion. Usually when the public market is this far down, institutional investors are less able to commit to new funds, so where is this money coming from?

DR: It's a great question. I think that we should remember that there have been extraordinary gains for a lot of these institutions over the last few years -- call it actually the last decade. And their positions have really mushroomed as well during this period. So what you're seeing is an allocation to funds that most likely have been around for a while. . . . and have actually provided very good returns over the years. I think that investors are looking to put their money into institutions that understand how to allocate this fresh new money in any market.

These funds keep getting bigger and bigger. Are there new funding sources? We've obviously seen sovereign wealth funds play a bigger role in venture funds in recent years. Does Index look farther afield than it once did?

There certainly has been this bifurcation in the market between funds that are probably more in the business of asset aggregation and funds that are trying to continue the artisanal practice of venture and we play in the latter camp. So in relative terms, our fund sizes have not become very significant. They have not grown dramatically, because we've been very clear that we want to keep it small, keep our craft alive and continue to go down that route. What that means is that when it comes to our institutional investor base, first of all, we don't have any family offices, and we don't take sovereign wealth fund money. We really are talking about endowments, pension funds, nonprofits and funds of funds that make up our base of investors. And we're fortunate enough that most of those folks have been with us for close to 20 years now.