You’ll Never Work In This Town Again
We reported 2 weeks ago about a law suit brought by founders of Epinions against heavyweight VCs at August Capital, Benchmark Capital, and BV Ventures. Private Equity Week now reports that the fallout from that suit has resulted in one plaintiff losing his position at a VC firm. Plaintiff Naval Ravikant has parted ways with Dot Edu Ventures. “Until two weeks ago, Ravikant was listed as a ‘partner’ on Dot Edu’s website. Now his name is gone.” Private Equity speculates that Dot Edu shitcanned Ravikant because it is a small firm and can’t afford to be cast as a trouble-maker whose partners sue other VC firms if it is to get deals alongside August, Benchmark, and other firms.
At this point it is hard to draw conclusions about how this case might conclude. Prior to working at Dot Edu, Ravikant worked at August Capital and another plaintiff – Kevin Laws – is a Principal at PacRim Venture Partners, so it figures that they understand how VCs might operate improperly and they must have known that they would be ostracized, so their case better be good.
On the other hand, two founders of Epinions are not joining the suit, including Dion Lim who says, “Very simply, nothing in my personal experience with John [Johnston], Bill [Gurley] and Nirav [Tolia], nor evidence that I have seen, makes me believe that they conspired to defraud the plaintiffs,” he says.
Read – VC Gets Frozen Out After Joining Suit (Private Equity Week)
Read – VCs Deceived, Lawsuit Charges (the a:c)