According to a new piece from Sifted, limited partners have a set of red flags they watch for when evaluating venture capital funds. The article gives founders and fund managers a view from the investor's side of the table.
The reporting lays out the signals that can cause LPs to become cautious. It is aimed at helping managers see their own behaviour through the eyes of those they hope to raise money from.
The broader lesson is that LPs are paying closer attention to how funds are run. Transparency, governance and alignment are likely to matter as much as past performance.