Why VCs are Evil, or Not. Maybe.
Mike Arrington has up a tough post on the troubles at VC-backed Filmloop. It alleges that the company's minority VC backers forced a sale on the cash-burning company, despite it having millions on the balance sheet. Evil, evil, evil. Right?Well, read two comments to the post. One is from a partner at the reputedly evil VC, and another is from David Cowan at Bessemer. Agree or disagree, it's good insight into VC portfolio dynamics, as well as the financial mechanics of company control.
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