It was the second time this year that I had to refuse seed-money for a sound strategy. The reason, believe it or not, was IT - compliance issues during the due dilligence process.
I'm really surprised how naive topics like
- Availability
- Business Continuity
- Security
are handled - or more precisely - ignored.
I appreciate that usually the Team who ventures out to start a Fund can not afford a massive overhead on IT staff but I wanna see a process in place.
With a strong dependency on IT equipment both on the analytical and operational side you can not safely assume that a low cost infrastructure will do the job.
Those people are in the business of meassuring daily risk exposure for a significant amount of money - money they don't own - and they fail to accurately determine the risks involved when the above listed topics are ignored.
...that is a pretty predictable tail event
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