The L.A. Times has been on this story for some time, but it heated up more today. ITU Ventures, an L.A.-based venture firm, has apparently had $120-million pulled from it by some prominent institutional investors. The story is somewhat complex, but it comes down to allegations of political campaign contributions tied to venture invesments.
The investors were troubled that the two partners, Chad Brownstein and
Jonah Schnel, solicited political contributions from the fledgling
firms they financed, and several obliged.
Colorado, New Mexico and California gave about $68,000 to California
Controller Steve Westly, an influential member of the state’s public
pension board who was running for governor at the time.