I have to say, I’m puzzled by the JP Morgan Digital Media Growth Fund. I’ll admit, I don’t know anything aside from what I read in the news.
But three things stand out.
1. They are playing in arguably the frothiest part of the market, where valuations are really very high.
2. I don’t see where JP Morgan has real information or relationship advantages vs firms that have done these kinds of deals for a living for a long time – insight, KPCB, Sequoia, etc. So I presume they’ll just pay more in later rounds.
3. I read that JP Morgan doesn’t have any significant skin in the game. Three things that, If true, bode pretty badly for this fund.
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