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VCs raise money the same way startups do, only with more regulation. For that bucket of money they likely presented a thesis for how they would used to invest i
by joewee 8y ago
VCs raise money the same way startups do, only with more regulation. For that bucket of money they likely presented a thesis for how they would used to invest in the ML/AI wave. Investors have rights if the money isn’t used they way they were told it would be.
VCs raise money from fund managers (sovereign wealth funds for example) who also present a thesis to their stakeholders for how the money will be managed.
Depends on the timing but I think VC focus on ML is a good indicator of where smart money thinks the money is going to be made. But there are a lot of people that catch a trend in the tail in, I don’t think we’ve gotten anywhere close to that for ML investments.
- gnicholas 8y agoYou make a good point about a VC's responsibility to stick to the plan they sold their LPs on. This could explain a lot of group-think and myopia in the industry. But in this particular case, it was a corporate VC, investing their own money.
- snaily 8y agoFor corporate VCs, s/LPs/board/
- y_molodtsov 8y agoThat's even worse for you case, I suppose. In case of a usual VC funds it's about the returns, but corporate VCs also look for some potential synergy. They probably were looking for some ML startups that they could utilize later.