The rush to join the Church of Sam Altman marked the beginning of an entirely new hype cycle, this time relating to generative AI. But venture capital’s limited partners are still reeling from the last cycle and their trust in startup investors might be at an all-time low.
LPs, the individuals who represent family offices, funds of funds, foundations and endowments, think many VC firms failed to provide a transparent explanation of the failed bets they made during the recent funding boom. Where are the postmortems? Where’s the honest account of lessons learned? Where’s the admission of failure in regard to governance? These are the questions LPs are asking.
