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.