In this week’s episode Download Strictlyvc Podcast, veteran VC Ellen Lee was directly direct about a major result of boom-end-bust bicycle: many companies stuck in Limbo are not struggling to regain their legs after raising too much money in unstable assessment; He has also lost the champions who once supported him.
Lee was discussing how limited partners hesitate to criticize powerful fund managers, fear that they would be shut down from investing in those firms again. But he imagined one thing that he would say if he could speak independently:
“Everyone wants to go to the X brand name fund, and so they will never criticize them (from fear of results). They probably talk about us behind our back (laughing) …. It is done, Li saw. “All (LPS ‘money was basically thrown down the drain because people were not enough to see for a long time in the jobs of the enterprise whether the companies were successful or not.”
This is not the fault of these new investors, Lee continued. “Just one ton of people were not trained and they did not get any mentorship or the training was given a checkbook, and a lot of invested, and. , As a result, there are many orphan companies.
But another reason is that startups are being left on their own equipment “and I feel it crazy,” Lee said; In many cases, companies have been orphaned by a more senior general partner “who led the investment – which is still (in the firm), but stopped showing the bus board meetings.”
For some companies, this has been happening at this point for years. Nobody worked as hard during funding Go-Go Kovid era, and the corner cutting never stopped when they came for similar investments. But it is also an important reason that the growing number of companies struggling to find out help with the exit strategies, and why LPS will be justified in giving voice to more disappointment.
As a VC for another long, Jason Lekkin, Told this editor At the end of 2022, when VCS first stopped showing in board meetings of startups, which were losing speed: “(S) does not have checks and balances? Millions and millions are invested by pension funds and universities and widows and orphans, and when you do not work hard on the way, and you do not work continuously in the board meeting, you are canceling some of your Feduri responsibilities for your LPS, are you? ,
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