VC aleen lee highlights how Exodus exacerbates the broader investor

In this week’s episode of A strict download Podcast, VC Aileen Lee was directly about a major result of the last prosperity and extraordinary cycle: Do not struggle with many companies that only hold birds to restore their foot after collecting a lot of money in unnecessary assessments; They also lost the heroes who once supported them.

I was discussing the frequency of the limited partners in criticizing the managers of the powerful funds, for fear of closing them to invest in those companies again. But she imagined one thing they say if they could speak freely:

“Everyone wants to enter the X brand name box, and therefore he will never criticize them (for fear of repercussions). They may talk about us behind our backs (laugh) … But what they will say (this) all the people who were appointed (they were employed in these project companies during the Zirp era. (LPS) is essentially thrown because people in adventure functions have not committed for a long time enough to see if companies are successful. “

It is not the mistake of these new investors, follow me. “A large number of people have not been trained and they have not received any vocational guidance or training, and many investments have been made, and there are many orphan companies,” as a result.

But there is another reason that startups for their own devices “and I find this madness,” he told me; In many cases, companies were an orphan by a larger public partner “led the investment – which is still present (in the company) but stopped appearing in the meetings of the Board of Directors.”

It was happening for years at this stage. No one did a lot of due care during the continuous financing era, and the corner cutting never stopped when it came to these same investments. But this is also a major reason that many companies are struggling to find external assistance in exit strategies, and why LPS will be justified in expressing more frustration.

Like another VC long ago, Jason Lemkin, He said this editor In late 2022, when VCS stopped for the first time to appear in the meetings of the startups of the startups of the Group: “There will be no checks and balances? Millions and millions are invested through pension funds, universities, widows and orphans, and when you do not do any diligence on the way, and you do not do the continuous diligence in the meeting of the Board of Directors, you are a kind of canceling some of your credit responsibilities to LPS, Is it?

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