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Genuine question: do VCs ever get fired by their firms, or forced to be fired by the LPs? There are a lot of VCs just play the sheep and don’t seem to know shi

• manigandham 4y ago
  LPs fire them by no longer investing more money. An actual VC would get fired if they never made a good deal. And there's always the case of criminal actions (fraud, etc) but that's the exception. Other than that, venture capital is a high risk investment where 99% of the portfolio is expected to fail so it's not exactly a surprise when it happens. How are you going to prove that an idea was definitely going to be successful or not? If you know that then you should be a VC. The reality of portfolio theory means they only need a single big win to return all the gains, and the rest is just a reasonable attempt at disqualifying ideas and spending the money on things that might work.
  • yumraj 4y ago
    > LPs fire them by no longer investing more money. That I understand. I was curious if any VCs been fired by the firm for repeatedly making bad bets. But I guess since in general >1 partner signs up on a deal they share collective responsibility so can't blame a single partner.