In the episode of this week’s strict download podcast, veteran VC Aileen Lee was direct about a great consequence of the last cycle of bust and bust: Many companies stuck in oblivion are not trying to recover their bases as they raise many money in volatile ratings; They have also lost the champions who once supported them.
Lee was discussing how limited partners are reluctant to criticize powerful fund managers for fear of being closed from investing again in those firms. But she imagined one thing they would say if they could speak freely:
“Everyone wants to enter the X brand fund, and so they will never criticize them (for fear of consequences).. They probably talk about us behind their backs (laughs) … But what they would say is (that) all the people who employed in these venture firms during the Zirp era. Lately, Lee observed.
It is not the fault of these newest investors, Lee continued. “Only a ton of people were not trained and they did not get any mentoring or practice were given control books, and a lot of investments were made, and there are many orphaned companies,” as a result.
But there is another reason that the beginnings are left to their equipment “and I see this crazy,” Lee said; In many cases, companies have been orphaned by a top partner “who led the investment – which is still there (in the firm), but simply stopped presenting at the board meetings.”
For certain companies, it has been happening for years at this point. No one did so much care during the fund of funding, and cutting the corner never stopped when it came to the same investments. But it is also a major reason that a growing number of companies is trying to find external help with exit strategies, and why the LPS would be justified in expressing more disappointments.
As another VC for a long time, Jason Lemkin told this editor at the end of 2022 when VCS for the first time stopped appearing at the Board of Beginning Boards that were losing momentum: “(s) Can there be controls and balances? Millions and millions are invested by pension funds and universities and widows, Continuous zeal at a board meeting, you are repealing some of your trust in your LP, right?
Look strictly download every week; The new episodes come out every Tuesday.
