Why Venture Capitalists Won’t Be Punished for Investing in FTX – CoinDesk

While I strongly believe VC funds and their managers carry significant responsibility to their LPs and must do their best to make investment decisions based on solid due diligence and according to fund policies, my prediction is the FTX-related VC probe is unlikely to amount to much from a regulatory perspective.

***

There’s no scenario in which a VC fund can guarantee a unicorn (a privately held startup company with a value of over $1 billion) or even modest positive returns – and that’s OK. Investors who are not comfortable with those odds shouldn’t be in the VC market. There will always be winners and losers, just like with the stock market. So instead of opening the litigation floodgates, let’s hold the fraudsters accountable and allow responsible VC funds to continue to invest in innovation.

Source: Why Venture Capitalists Won’t Be Punished for Investing in FTX – CoinDesk