VC Aileen Lee highlights how the broader investor exodus is worsening woes for unicorn companies

In this week’s episode of PodCast Strictlyvc, veteran VC Aileen Lee was directly about a major result of the last prosperity and supernatural cycle: Do not struggle with many companies that hold on forgetting only to restore their foot after collecting a lot of money in unstable assessments; They also lost the heroes who once supported them.

I was discussing the frequency of the limited partners in criticizing the managers of the powerful funds, for fear of closing them to invest in those companies again. But she imagined one thing they say if they could speak freely:

“Everyone wants to enter the X brand name box, and therefore they will never criticize them [for fear of repercussions] . . They may talk about us behind our backs [laughs]…. But what will say [that] All the people they have [were] I rented in these adventure companies during the Zirp era. . . They have made a set of crazy investments “and now they are taken out – but it is too late, as noticed to me.” Everyone [the LPs’] The money was just delivered mainly because people in adventure jobs have not committed for a long time to see if companies are successful. “

It is not the mistake of these new investors, follow me. “A large number of people have not been trained and they have not received any vocational guidance or training, and many investments have been made, and there are many orphan companies,” as a result.

But there is another reason that startups for their own devices “and I find this madness,” he told me; In many cases, companies were an orphan by a larger public partner “led the – which is still there [at the firm] But he stopped appearing until the Board of Directors meetings. “

For certain companies, it was happening for years at this stage. No one did a lot of due care during the continuous financing era, and the corner cutting never stopped when it came to these same investments. But this is also a major reason because the number of increasing companies is struggling to find external assistance in exit strategies, and why LPS will be justified in expressing more frustration.

Since the long VC has been, Jason Lemkin told this editor in late 2022 when VCS stopped for the first time to appear in the meetings of the startups of the startups that were losing the momentum: “[S]Is there no checks and balances? Millions and millions are invested through pension funds, universities, widows and orphans, and when you do not do any diligence on the way, and you do not do the continuous diligence at the meeting of the Board of Directors, you are a kind of canceling some of your credit responsibilities to LPS, right? “

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