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A comment on Frank founder allegedly defrauded JPMorgan out of $175M hit with federal charges. Parent comment

Re:Frank founder allegedly defrauded JPMorgan out of $175M h... by jcrben on Tuesday April 04, 2023 @01:50PM (#35443432)
No, they lost limited partners money, which is to a large degree pension money.

Not sure how much VCs coinvest in their own funds but I'm willing to bet most of their retirement funds are not in VC investments.

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Re:Frank founder allegedly defrauded JPMorgan out of $175M h... by mbesto on Tuesday April 04, 2023 @02:18PM (#35443851)
> which is to a large degree pension money.

Then take this up with your local government then. There is a quantitative risk versus reward they take, and you should be glad that they take this bet. FYI - their portfolio mix for VC assets is usually like less than 5~10%. If a GP makes one bad bet, they hardly feel this.

> Not sure how much VCs coinvest in their own funds but I'm willing to bet most of their retirement funds are not in VC investments.

(1) most co-invest (2) no one in their right mind would put all of their assets in one VC fund. (3) if you're a partner a firm like Sequioa, you likely have a family office setup, which would follow a similar model to that of a pension fund.

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