Manage To Fail Through Weirdness
Whatever Happened To Ventro

Why No One Sues Venture Capitalists

Venture Capital

from the airtight-mass-insanity-defense dept

Thu, Jan 3rd 2002 10:18am — Mike Masnick
An interesting article explaining why no one is suing venture capitalists for all the money they lost after the dot com bubble collapsed. Mostly it looks at the limited partners who invested in the VC funds - and of course it turns out that the VCs have very strong legal agreements with these people when they invested. Obviously, investing in a VC fund is risky business. However, the article asks if investing in the fifth pet dot com is clearly negligent, and says that they can use a sort of "mass insanity" defense. In other words, they can easily claim it seemed like a reasonable move at the time - because everyone else was doing it. Personally, I just like the idea of VCs being massively insane...
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  1. identicon
    sb, 3 Jan 2002 @ 12:11pm

    No Subject Given

    people were buying stocks like there was no tomorrow...there werent enough to go around////
    so VC's helped produce the product that investors wanted to buy. supply/demand. is anyone gonna sue BEENIE babies or baseball card makers? NO....yet, its the SAME DAMN THING.....people need to take responsiblilty for their greed and actions... YOU bought it, so DEAL with it...PS: EVERYTHING was in the prospectus,,,there are amries of lawyers working for the banks,,,,investors shouldn't and generally won't get a dime...

    [ link to this | view in thread ]

  2. icon
    Mike (profile), 3 Jan 2002 @ 1:27pm

    Re: No Subject Given

    This wasn't about stock market investors... but LPs in the actual venture funds.

    [ link to this | view in thread ]

  3. identicon
    sb, 3 Jan 2002 @ 4:16pm

    Re: No Subject Given

    gotcha. if you invest in a VC fund, then prepare to lose it all. its ALL in the prospectus . No one complained when the same RECKLESS investing was gaining 1000% a pop.

    [ link to this | view in thread ]


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