Kim: Most LPs invest via social proof and preserve failing VC funds
Michael Kim · 20VC: What It Takes To Raise A VC Fund & Investing in First Time Fund Managers with Michael Kim @ Cendana Capital · Jul 6, 2016 · at 22:43
Michael Kim is the founder and managing partner of Cendana Capital, an LP in seed-stage venture funds. He critiques LP investment discipline and fund longevity.
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“I think most LPs are social proof investors. I think that there's a substantial dynamic of you don't get fired for buying IBM. And venture funds are hard to kill. A lot of them should have been killed, but they're 10 to 12 year vehicles.”
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