A year later, crumbling VSP disintegrates further
Gosh, this saga at VSP Capital
in San Francisco is getting really ugly. We don't especially like pointing to the latest dirty laundry
, but we do it because it may teach valuable lessons for others: If you're considering joining a venture capital firm, be very careful
who you join with.
We haven't confirmed this latest stuff ourselves. But it seems Constance Loizos, of PE Week, has done thorough reporting. It is astonishing how something can self-destruct so terribly. If only the partners had told themselves two years ago, before all this happened, they had plenty of money to make a decent living, they were making ok investments, and that all they had to do was disclose a few relationships to stay out of some pending trouble, perhaps none of this may have happened. Armchair quarterbacking, yes. But maybe those wise prophets who taught that mammon is the root of all evil were right after all. Something given short shrift these days in wealthy SF-Silicon Valley.
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Perhaps this is a good reminder to investment that long-term teams that are disclosed (e.g. husband-wife and domestic partners) aren't so bad after all.
And to think I got gonged on a business plan by an (admittedly) second-rate SF VC a few years back saying in writing (it was *very* interesting reading) that he would "NEVER" fund a married woman, but wouldn't have minded it if I was having an affair with my co-founder. This bizarre attitude is unfortunately very commonplace. ;-)
And that Matt is why nobody will "disclose a few relationships to stay out of some pending trouble". Because then they won't do business with you. Disclosure provides another reason to say "No".
Chief Technology Officer