Remember the saga at VSP Capital, the San Francisco firm run by Joanna Rees-Gallanter? Where we refused to divulge the full details? Well, we can now reveal it all. We’ll simply link to what has now become public information, since it is relevant for all the start-ups that VSP invested in, and for at least some investors. It might also serve as an important lesson for others.
Dan Primack has the scoop. We can only reiterate ourselves what he says, as far as reasons for why we didn’t mention any of this earlier. So we point to his words, as they are a good summary:
Ever since this saga began in May, readers have asked the following question: “You keep telling us that people have left and that LPs have disbanded funds, but you never tell us why it happened.” This is a valid criticism of both me and my colleague Constance Loizos (who originally broke the story, and who has written about the countersuit here) — particularly given that we’ve known the reason.
Our only excuse is that neither we — nor our editors — have felt comfortable reporting “the reason” without first having someone state it on the record (i.e., for attribution). It’s one thing to use background sources to discuss management fee disputes or fund-raising efforts, but this is quite another animal. Now that the countersuit has been filed in San Francisco Superior Court, however, it’s time to provide you, dear readers, with the explanation to which you’re entitled…