Silicon Valley venture firm August Capital held its annual holiday dinner on Dec. 6. The mood was festive, not only because of the season, but also because August had recently held a first close on its eighth fund after an unusually arduous process.
Four days later, the firm effectively imploded. What follows is based on conversations with numerous August Capital employees, investors and other sources familiar with the situation. None were willing to speak on the record except for David Hornik, August's highest-profile current partner and the man who made a lot of very difficult phone calls that Sunday.