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Later information is much more vague about this, and one of the core complaints is that he used the management fees of his funds to sponsor companies that argua
by endorphone 9y ago
Later information is much more vague about this, and one of the core complaints is that he used the management fees of his funds to sponsor companies that arguably competed with holdings of the funds - a serious conflict of interest.
This fund was started with a ridiculous fee structure of 17.5% of total investment upfront, and then apparently no going forward fees. Like a "lifetime VPN" subscription, the economics don't make sense and it is a folly arrangement for all sides.
- dmschulman 9y agoAlso from the Backchannel article: "Several former Rothenberg Ventures and River Studios employees now say they didn’t understand why River Studios was green-lit. One former employee noted that River Studios also competed for clients and market share with at least two of Rothenberg Ventures’ portfolio companies that were already in VR film production, Triggar and vantage.tv. (Triggar didn’t respond to requests for comment, and vantage.tv’s CEO Juan Santillan wrote in an email, “I don’t agree with many of the things that were going on at RV…” but added, “RV[’s] extended team has been great to us.”)"