VSP Capital is falling apart
An update to the VSP Capital item we posted yesterday:
The "departing" partners we mentioned in our original story, Matt Crisp and Vince Vanelli, have disappeared from VSP Capital's web site. That leaves only Joanna Rees-Gallanter and John Hamm as full partners. We're told that Crisp is a so-called "key man," i.e, that if he leaves, limited partners have the right to withdraw their money. We're told Duke isn't the only one upset by all this, but haven't confirmed much yet.
Some people have asked us why this is happening, especially since CEOs who have worked with Gallanter support her (see comments in the first entry), including the two we quoted in our original story and several others we have talked with. We agree it is unfortunate because so few women lead their own venture firms. Gallanter is the only one we know of in Silicon Valley.
Well, we've been told one reason why, but we're reluctant to write it here because of its personal nature. Suffice it to say, it's reason enough for partners to choose to leave. We confronted Gallanter with it before publishing our story Sunday, and she didn't deny it. Nuf said for now.
UPDATE: PE Week has just followed up, too, here. It has lots of details that we didn't get into, and is worth reading. We're told Dana Settles, though, is not a full general partner in the fund, but a "venture" partner.
C'mon, you can give us the scoop on the "personal nature" issues, it is not like you will be sued. At least things become clear for everyone, including prospective LPs, entrepreneurs etc
Despite Gallanter being one of the few women leading her own venture firm, you should elucidate the reasons for VSP's and Gallanter's predictment. What difference does it make if the reasons you cite are personal in nature, if they are serious enough for limited partners to choose to leave? Leadership behavior and human characteristics (both the good and bad) are the bedrock of decision making for prospective limited partners, entrepreneurs and aspiring general partners. Isn't the reporter's job to provide objective, factual information, not innuendo that obscure the issues? I'd love to see a follow up article that clarifies your ambiguity.
Rees-Gallanter may be one of the few women managing a venture firm, but she certainly does not support women. How many of the companies has VSP invested in have woman founders? More importantly, why has there never been a woman General Partner at VSP? Why have all women employees above administrative level been let go within a short period of time?
We've take down a subsequent comment, and three related comments on another post we made about VSP because they contained negative personal allegations, were all anonymous, and in at least one case, we knew the claim to be untrue. We'll remove comments in the future if they contain such mean-spirited allegations.
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