Dear Investor In A Venture Fund
TheFunded.com Open Letter
Posted by Anonymous on 2008-03-31
I sincerely hope that you are reading The Funded before pumping good money after bad into the mediocre funds that stain the reputation of the once venerable venture capital industry. I also hope that you are not exclusively relying on self-reported fund IRR numbers, especially since these firms have no independent oversight.
Venture capital is of vital service to entrepreneurs. As a limited partner, or investor in a fund, you vote with your money, so pick the good firms that help entrepreneurs. Any fund can roll the dice and score a small piece of a big deal. This may make their returns look great while their behavior makes everyone in the deal, including other venture capitalists, miserable. It is going to get a lot harder for the bad investors to find dealflow, so move your dollars to the good investors sooner rather than later. It will pay off for everyone.
