Fear of missing outliers traps LP capital in underperforming legacy funds
Paul Martino · 20VC: Investing In Sectors That Were Cool 2 Years Ago, What Accel's Facebook Fund Taught a Generation of LPs & Why LPs Need A New Discovery Process with Paul Martino, Founding Partner @ Bullpen Capital · Nov 16, 2016 · at 27:07
Paul Martino, General Partner at Bullpen Capital, critiques institutional LP capital allocation decisions and legacy venture brand advantages.
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“This has now trained a generation of LPs to be scared to death to cut off funds that aren't performing well, because they could be just around the corner from Facebook. And as a result, a lot of that money that should be going to new and innovative funds gets captured by big funds whose brands continue to get money in spite of performance that's not great.”
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