We, like all VCs, had to write a note to our LPs today. I thought it worth sharing the intro below. SVB's failure is all of our loss. Dear Foundry LPs -
The last 48 hours of stress in the startup ecosystem have been exceptional. Silicon Valley Bank (SVB) has been an important part of our ecosystem for a long time. They banked a large number of companies and funds, including many of ours.

Denominator effect will be in play but, most of all, LPs get risk-averse really quickly (especially their ICs). I sit in on a few and the discussion is all defense, no offense these last few weeks. You can guess that I’m pushing them to keep investing through the cycle.

https://twitter.com/semil/status/1501620985191022597

Okay, how do LPs think about current holdings? Will they see a big drop in values? I don’t think you see that for several quarters & then only in a sustained down cycle for equities. It will come first in the late-stage funds (those that ran up the most will come down the most).

"We should change the cadence of general meetings to 18 months or more and GPs should visit LPs more frequently." - I put that advice in an email yesterday and I'm curious what other LPs think about it? Annual meetings are a lot of work and cost. Do they accomplish their goals? The stated goal is to report on fund investments to LPs. The meetings are also a way to build and maintain important relationships for future fundraising. They also serve as institutional rigor that is healthy for the GPs to evaluate a portfolio and strategy in total.