Hacker News Reader

> Its nice that if Uber does implode (not that they will) that only VC's will lose their money...

Although don't forget the VC funds' lending partners are often pension funds and other traditional investment vehicles that you or I might use.

View on HN

True but if the pension fund has more than a fractionally small percentage of their fund in startups then they don't deserve to be pension fund managers. When an Australian pension fund joined one of Blekko's funding rounds the amount their manager was spreading around the valley seemed like a lot of dollars but was less than .1% of the funds under management. So losing all of it had very little material impact on the fund, but a really big unicorn might push the return on the fund up by 20 or 30 basis points.

Agreed.

I thought it worth clarifying for people like those I regularly meet who aren't aware of the LP role in the industry. There's a misconception that the VCs are just investing their own money.

Reply on news.ycombinator.com