In this week’s StrictlyVC download podcast episode, the veteran VC AILEEN Lee has been directly about the main results of the boom and burst cycles. Many companies that have been trapped in Limbo are not just having difficulty in reclaiming the foothold after raising too much money in an irreversible evaluation. They also lost the champion who once supported them.
LEE was afraid to invest in the company again, discussing how limited partners hesitated to criticize strong fund managers. But she imagined what they would say if they could speak freely.
“Everyone will never be criticized because they want to enter the X brand name fund (because of fear of repercussion). . . Perhaps we will talk about us behind us (laughs). But what they say is all those who are hired by the ZIRP era. . . They have made many wrong investments and are now too late. “All (LPS ‘) money is basically abandoned in the drain because people in venture jobs have not been able to stay long enough to know if the company has succeeded.”
LEE continued that it was not the fault of these new investors. “Many people were not trained, they didn’t get mentoring or apprenticeship, checks were provided, and many investments were made. . . There are many companies with many orphans. ”
But there’s another reason why the startup is entrusted to your device. In many cases, the company wrote an orphan by a senior general partner who was in a person who is leading the investment that is leading the investment but stopped appearing at the board meeting.
Certain companies are happening for many years at this point. In the era of financing of Go-Go Covid, no one was due to live, and the corner cutting was never stopped. However, more and more companies are struggling to find external help for the end strategy, and why is LP justified in expressing more frustration?
Another long VC, Jason Lemkin, told the editor when he stopped starting at the start -up board meeting where VCS first lost momentum in late 2022. Millions and millions are invested by pension funds, universities, widows, orphans.
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