4 ms·

I don’t understand the title’s relevance to what is posted/linked. What is an LP, mentioned in the update?

by bmitc 4y ago

newfonewhodis 4y ago
Sequoia deleted the original post. Here's the cached version: https://webcache.googleusercontent.com/search?q=cache:pizI33lYOGAJ:https://www.sequoiacap.com/article/sam-bankman-fried-spotlight/&cd=1&hl=en&ct=clnk&gl=in https://webcache.googleusercontent.com/search?q=cache:pizI33...
- williamstein 4y ago
  With choice quotes such as “To do the most good for the world, SBF needed to find a path on which he’d be a coin toss away from going totally bust.”
  - quantumwannabe 4y ago
    My favorite quote from the article: “FTX did need money, after all. And it needed that money from credible sources so it could continue to distinguish itself from the bottom-feeders who came to crypto to fleece the suckers.”
  - adolph 4y ago
    Why did he do so much for Biden, someone he has never met? Well, because he said he crunched the numbers on how much impact each dollar would have if he donated it. That’s the same approach that led him to get involved with Mind the Gap, a data-driven donor group very popular in Silicon Valley led by his mother, Stanford professor Barbara Fried. https://www.vox.com/recode/2021/3/20/22335209/sam-bankman-fried-joe-biden-ftx-cryptocurrency-effective-altruism https://www.vox.com/recode/2021/3/20/22335209/sam-bankman-fr...
    - disqard 4y ago
      Any sufficiently large crypto scam is indistinguishable from an episode of "Silicon Valley" (Clark3's Law)
      - bmitc 4y ago
        They should restart the show with a new cast and a crypto company. It'd probably only last a single season though.
  - pr337h4m 4y ago
    > “Oh, yeah?” says SBF. “I would never read a book.” If he had ever read Atlas Shrugged none of this would have happened :)
    - defen 4y ago
      The follow up quote is even better: “I think, if you wrote a book, you fucked up, and it should have been a six-paragraph blog post.” Strong Vizzini energy https://www.youtube.com/watch?v=BUg2cp23rGE https://www.youtube.com/watch?v=BUg2cp23rGE
- bmitc 4y ago
  Thank you. What's weird is that they describe Jane Street as an "under the radar" shop, which it isn't. and also a high-frequency trading shop, which it also isn't to my understanding.
phphphphp 4y ago
Sequoia have removed the article because of how embarrassing it is in hindsight (and at the time but I guess at the time their embarrassment threshold wasn't reached). The title references the article. You can find a copy linked in this comment: https://news.ycombinator.com/item?id=33549307 https://news.ycombinator.com/item?id=33549307
pjc50 4y ago
"Limited partner". Oddly as Sequoia aren't structured as a partnership, they appear to be a regular LLC. I guess you can just read "investor".
- propter_hoc 4y ago
  Sequoia is structured as an LLC, but they, or an affiliated "GP Co" still act as the general partner of their funds (which are limited partnerships). Here's a couple diagrams of typical VC fund structures: 1. https://www.asimplemodel.com/wp-content/uploads/2021/10/Private-Equity-Fund-Structure_Summary-Text_202009_TinyPNG-980x551.png https://www.asimplemodel.com/wp-content/uploads/2021/10/Priv... 2. https://miro.medium.com/max/1400/1*XPPTuER9ZGAoXSMe544ZUw.png https://miro.medium.com/max/1400/1*XPPTuER9ZGAoXSMe544ZUw.pn...
defen 4y ago
Limited Partner, the people (funds) who give VCs money to invest. If you read the cached version of the content that was previously on the page (someone linked it in the comments) it's kind of maximally embarrassing for them, and really puts to rest any notion that elite VCs are smarter or better than the rest of us.
- bmitc 4y ago
  Thanks! > really puts to rest any notion that elite VCs are smarter or better than the rest of us. Oh, I was under no other impression. Most of these VCs got lucky in the dot com bubble days and other such scenarios. They certainly are not oracles.
- robocat 4y ago
  https://www.investopedia.com/terms/l/limited-partner.asp https://www.investopedia.com/terms/l/limited-partner.asp The important bits: “A limited partner's loss from the company's operations may not exceed the amount of the individual's investment.” and “Limited partnerships are pass-through or flow-through entities. That means that all partners are responsible for taxes on their share of the partnership income, rather than the partnership itself.”.

I don’t understand the title’s relevance to what is posted/linked. What is an LP, mentioned in the update?

by bmitc 4y ago

I don’t understand the title’s relevance to what is posted/linked. What is an LP, mentioned in the update?

Sequoia deleted the original post. Here's the cached version: https://webcache.googleusercontent.com/search?q=cache:pizI33lYOGAJ:https://www.sequoiacap.com/article/sam-bankman-fried-spotlight/&cd=1&hl=en&ct=clnk&gl=in https://webcache.googleusercontent.com/search?q=cache:pizI33...

williamstein 4y ago
With choice quotes such as “To do the most good for the world, SBF needed to find a path on which he’d be a coin toss away from going totally bust.”
- quantumwannabe 4y ago
  My favorite quote from the article: “FTX did need money, after all. And it needed that money from credible sources so it could continue to distinguish itself from the bottom-feeders who came to crypto to fleece the suckers.”
- adolph 4y ago
  Why did he do so much for Biden, someone he has never met? Well, because he said he crunched the numbers on how much impact each dollar would have if he donated it. That’s the same approach that led him to get involved with Mind the Gap, a data-driven donor group very popular in Silicon Valley led by his mother, Stanford professor Barbara Fried. https://www.vox.com/recode/2021/3/20/22335209/sam-bankman-fried-joe-biden-ftx-cryptocurrency-effective-altruism https://www.vox.com/recode/2021/3/20/22335209/sam-bankman-fr...
  - disqard 4y ago
    Any sufficiently large crypto scam is indistinguishable from an episode of "Silicon Valley" (Clark3's Law)
    - bmitc 4y ago
      They should restart the show with a new cast and a crypto company. It'd probably only last a single season though.
- pr337h4m 4y ago
  > “Oh, yeah?” says SBF. “I would never read a book.” If he had ever read Atlas Shrugged none of this would have happened :)
  - defen 4y ago
    The follow up quote is even better: “I think, if you wrote a book, you fucked up, and it should have been a six-paragraph blog post.” Strong Vizzini energy https://www.youtube.com/watch?v=BUg2cp23rGE https://www.youtube.com/watch?v=BUg2cp23rGE
bmitc 4y ago
Thank you. What's weird is that they describe Jane Street as an "under the radar" shop, which it isn't. and also a high-frequency trading shop, which it also isn't to my understanding.

phphphphp 4y ago

Sequoia have removed the article because of how embarrassing it is in hindsight (and at the time but I guess at the time their embarrassment threshold wasn't reached). The title references the article. You can find a copy linked in this comment: https://news.ycombinator.com/item?id=33549307 https://news.ycombinator.com/item?id=33549307

pjc50 4y ago

"Limited partner". Oddly as Sequoia aren't structured as a partnership, they appear to be a regular LLC. I guess you can just read "investor".

propter_hoc 4y ago
Sequoia is structured as an LLC, but they, or an affiliated "GP Co" still act as the general partner of their funds (which are limited partnerships). Here's a couple diagrams of typical VC fund structures: 1. https://www.asimplemodel.com/wp-content/uploads/2021/10/Private-Equity-Fund-Structure_Summary-Text_202009_TinyPNG-980x551.png https://www.asimplemodel.com/wp-content/uploads/2021/10/Priv... 2. https://miro.medium.com/max/1400/1*XPPTuER9ZGAoXSMe544ZUw.png https://miro.medium.com/max/1400/1*XPPTuER9ZGAoXSMe544ZUw.pn...

defen 4y ago

Limited Partner, the people (funds) who give VCs money to invest. If you read the cached version of the content that was previously on the page (someone linked it in the comments) it's kind of maximally embarrassing for them, and really puts to rest any notion that elite VCs are smarter or better than the rest of us.

bmitc 4y ago
Thanks! > really puts to rest any notion that elite VCs are smarter or better than the rest of us. Oh, I was under no other impression. Most of these VCs got lucky in the dot com bubble days and other such scenarios. They certainly are not oracles.
robocat 4y ago
https://www.investopedia.com/terms/l/limited-partner.asp https://www.investopedia.com/terms/l/limited-partner.asp The important bits: “A limited partner's loss from the company's operations may not exceed the amount of the individual's investment.” and “Limited partnerships are pass-through or flow-through entities. That means that all partners are responsible for taxes on their share of the partnership income, rather than the partnership itself.”.