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Nah, where there’s smoke there’s fire. They’re fucked because their LPs are losing their minds, and as a result everything changed for them and they’re bailing
by austenallred 7y ago
Nah, where there’s smoke there’s fire.
They’re fucked because their LPs are losing their minds, and as a result everything changed for them and they’re bailing on deals.
- Kye 7y agoWhat's an LP in this context?
- MartianSquirrel 7y agoLP is short for Limited Partner
- ganstyles 7y agoLimited Partner, the people who out up money in VC funds for the General Partner to invest/manage. iirc though LPs cant have an actual say in investment/strategy or else they risk losing the "Limited" status.
- OnlineGladiator 7y agoLP stands for Limited Partner. They are the people that actually provided the funding, but they have an arrangement where they have severely limited control (basically none) as to how the money is managed once it's part of the fund. The reason for this is because they are trusting the VC firm to actually invest their money wisely, and the VC firm needs to able to do that without constant interference from the investors. https://www.thebusinessofvc.com/blog/limited-partners-101 https://www.thebusinessofvc.com/blog/limited-partners-101
- jonny_eh 7y agoAll true. I suspect in this case Softbank was depending on the Vision Fund LPs to come back for round 2, but the WeWork fiasco scared them off, and now WeWork is in panic mode.