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The sad saga at VSP Capital is over

PE Week confirms here that VSP Capital is indeed folding. Brings to an end one of the few Silicon Valley venture firms run by a woman:

VSP Capital has asked its limited partners to cease financial backing for the firm's $185 million fund III, firm founder Joanna Rees-Gallanter told PE Week on Tuesday. It was her first formal comment following PE Week's report that VSP's LP advisory board effectively agreed to discontinue Fund III.

In light of the triggering of the key man provision, the senior management of VSP Capital has recommended to the firm's limited partner advisory board to discontinue further investments in VSP III and concentrate resources on the firm's existing portfolio companies, Rees-Gallanter wrote in an email to PE Week.

See some our past coverage, see here (a story for which we interviewed Gallanter), here, and here.

Update: Well, saga is not entirely over. Now the firm has to deal with its baggage: The battle for control of the firm's investments from its earlier fund II has already begun, according to a PE Week. Gallanter and Hamm reportedly want control, but it will be up to LPs.



Comments

typical of Joanna Gallanter to put a spin on things - the reality is that her lp's voted unanimously to shut the fund down - now she wants you to believe that she asked the lp's to shut the fund down - sure.

on June 8, 2005 2:42 PM
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So what was the big reason for all the turnover that led to all this?

on June 8, 2005 7:41 PM
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Is it possible for some brave journalist or knowledgeable insider to publish an article about the happenings within VSP that doesn't have a spin on it?

on June 8, 2005 9:27 PM
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No, it's not possible. Unfavorable comments with dirt were removed from two stories.

on June 14, 2005 10:35 PM
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Why is Dana Settle's bio still up on there site when she's no longer with the company? Looks like they are trying to make the company appear more staffed then it actuall is.

on June 22, 2005 6:10 PM
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who cares about dana settle. what did she ever really bring anyway??? she's a perfect example of why the place ultimately failed. major ethical issues....

jake furst on June 25, 2005 11:48 PM
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