I’ve had fairly good fortune – or maybe fairly good judgment – on almost always having gotten into business with stand-up people whose word was their bond, and who didn’t look to make a buck by mistreating their partners/investors.
A recent event, however, offers a word of caution, not just for me for anyone who gets involved in small company (“private equity”) investing.
About 15 years ago, I was shown an investment opportunity in a promising biotechnology company called Xencor. Some friends and I invested through a little partnership we created for the purpose of investing together.
The person who showed us the deal was a man whom I had worked for in Europe for about two years. Because he never performed on his promise to bring competitive technology to the electronic markets we were trading, our team was unable to compete, though of the first traders to go over there, I was the only one who showed a trading profit at the time that I gave up, realizing that the trading company owner had no intention of making the investment he promised in order to allow us to do well.