« MBAs Go Contrarian on Google | Main | Catching Up: VC Eating, Murdoch, and Cell Phones »
Latest Stories
- Me Media: CNBC Power Lunch Today
- Bubbles are Good For You Because ... They Are
- Quote of the Day: Commodities Markets
- San Diego Homes Bottoming?
- The Myth of the Angel Investor
May 3, 2007
Top Ten Limited Partner (LP) Lies
Now and then I'm fond of running top ten lists, including my list of top ten VC lies a little while back. Well, that latter post provoked another venture guy to send me, with a request of anonymity, the following entertaining list of the top ten lies of LPs, the institutions that fund venture firms. It's a bit "inside baseball", so feel free to ask for explanations, but I think it's great stuff.10: We don't invest in first or second funds, see #1
9: We have committed this years allocation
8: We don't believe in this asset category unless we can get into Sequoia
7: My committee would never let me do a deal outside of the valley
6: Our diligence is very deep (bottomless unless you are about to close and any of my close LP friends are in)
5: Your past results don't fit into our quantitative model that is highly predictive of future success
4: We don't invest less than $100M per fund (and we expect early-stage returns)
3: We are independent thinkers
2: We would really like to be in the second close
1: See #10... we don't invest in first or second funds unless Harvard / MIT / Stanford are already in
Digg it
Bookmark it
Stumble it
