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Why is it assumed that this morally undesirable money would take the form of an LP directly signed on with one's VC? Can't this money instead invest itself with
by rl3 8y ago
Why is it assumed that this morally undesirable money would take the form of an LP directly signed on with one's VC? Can't this money instead invest itself with an existing LP that's seemingly on the up and up?
For example, say Goldman is an LP on one of your VC's funds from which your company receives money from. Setting aside how morally dubious they are on the face of it, they're otherwise a reputable and respected American company.[0]
However, where's their money coming from? On a larger scale Goldman absolutely does business with the Saudis and has forever. On a smaller scale, I'm sure there's any number of vehicles or ways to otherwise structure the money going into a particular investment such that it'd be difficult for the eventual recipient (i.e. the startup) to know exactly where it's coming from, let alone the VC.
[0] https://www.foxbusiness.com/business-leaders/goldman-quietly-sending-reps-to-controversial-saudi-conference-despite-ceos-comments https://www.foxbusiness.com/business-leaders/goldman-quietly... /s