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Is there any access at all, even through other funds? If not then there is a problem. Maybe prohibiting advertising and soliciting is enough. Maybe place some l
by pishpash 9y ago
Is there any access at all, even through other funds? If not then there is a problem. Maybe prohibiting advertising and soliciting is enough. Maybe place some limits. But there are no good reasons I can think of to blanket prohibit investment itself to the "non-accredited".
- tptacek 9y agoYes; the money venture capitalists invest comes from other funds, among them things like pension funds. A fact people seem to overlook in these discussions is that unless you can see the future, you can't just invest in Google and Airbnb; you invest in a sample of the whole tech startup market. And when you do that, by and large, you underperform the S&P 500. Funds and endowments invest as VC LPs not simply because they want access to the insane deals that startups provide, but because they want decorrelated investments: they want some of their money allocated to investments that will perform differently than the market as a whole. When you have billions under management, it makes total sense to throw tens of millions at tech startups.