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Comment by elmar | Hacker News Reader

Some startup founders are ‘nervous’ about dealing with Benchmark after it sued Uber

https://www.recode.net/platform/amp/2017/8/11/16130148/bench...

nervous about working with competent investors who aren't complete marks? somehow I doubt benchmark will have difficulty finding people to take their money.

It may matter, since VC returns are dominated by the outlier companies that return 100x.

If the next Slack (i.e. companies where VCs form a line to have them take their money) always pass on Benchmark after remembering this, instead choosing to take money from Sequoia/A16Z/NEA etc., who are also competent investors who aren't complete marks, then returns may take a hit.

I mean, maybe. But Benchmark is heavily bought into Uber. They've got a lot to lose/gain here. And they have a reputation to defend not just with future founders, but also future LPs. You can bet that there are a lot of potential LPs looking at VC behavior here, and that ones who are deferential to Kalanick will have a harder time raising future funds if this whole thing goes tits up.

Benchmark clearly believes that Kalanick is toxic to Uber's success. Given the amount of money they have in the game, and given the belief that Kalanick will sink Uber, it's pretty hard for me to come up with odds that future founders will be Benchmark-averse that overcome the amount of money they have in play with Uber plus whatever heat they'll take from their LPs.

that assumes that the majority of founders would view what benchmark is doing as negative. to me it looks like good business.

Read this http://www.nytimes.com/2005/01/26/technology/founders-of-web...

tl;dr group of founders at epinions gets conned by the ceo, their partner - and they sue that guy (who has a dubious reputation on many counts) as well as everyone who touched the deal including benchmark. they got a settlement. they probably would have lost at trial. i don't see how that reflects negatively on benchmark.

These were my exact sentiments earlier.

https://news.ycombinator.com/item?id=14986446

They have really dropped the ball with this one. I know I wouldn't work with benchmark if I had a choice in the matter. A company is too hard to build - let alone a unicorn - to let investors treat you the way Benchmark have treated Travis. There are better ways to deal with such issues. They embarrassed him and left him out to dry at a time when they should have been most supportive.

I am severely disappointed in Benchmark and I hope they go away for good!

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