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The later the stage investor, the less they need to worry about their reputation with anyone except their LPs.
by pg 15y ago
The later the stage investor, the less they need to worry about their reputation with anyone except their LPs.
- dschobel 15y agoYeah but christ, is anyone going to want to take money from them after this? This is cut-throat by any standard...
- astrec 15y agoPE firms like this focus more on leveraged buyout than growth capital - the people taking their money are generally looking for an exit.
- redthrowaway 15y agoDoes this not hurt their future ability to invest in big name up-and-coming companies? If I'm the next facebook or twitter, these kind of shady practices would make me think twice about handing over a large share of my company to them. Can they only get away with it because their competitors engage in the same behaviour?
- sachinag 15y agoa16z was also a part of the group that did the Skype MBO; I'd be surprised if founders held it against them.
- random42 15y agoWhat is LP? Limited partners? (Apologies for ignorance)
- suking 15y agoyes - the people that give VCs $.