Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

The University of Texas' endowment recently made its first fund commitment to Sequoia Capital, which is among the top-performing venture capital firms of all time.

Why it matters: It is the final coda to venture capital's fight to prevent disclosure of its funds' performance, which raged in courtrooms and newspapers during the early aughts.

The backstory: VC fund returns once were held in strict confidence between general partners and limited partners. But then, beginning in 2002, a series of media FOIA requests and at least one fat finger incident by someone at a California public pension began to erode the opacity.

  • Sequoia was the loudest firm in wanting to maintain confidentiality. It demanded that the University of Michigan's endowment leave its active LP roster, and vowed to never let it invest again, although Michigan later passed a shield law that largely kept such data under wraps. Sequoia's fund performance — plus that of Kleiner Perkins — also was the basis of a lawsuit brought by the San Jose Mercury News against the University of California Regents.
  • The University of Texas Investment Management Co. (UTIMCO) was the loudest limited partner in supporting disclosure of fund-level returns, in light of media insinuations that it had given sweetheart deals to some individuals affiliated with the school. Its disclosure efforts were boosted by then Texas AG John Cornyn (now a U.S. senator), and the accusations disintegrated in the sunlight.

At issue was venture capital's claim that fund performance was a trade secret, and that funds would be put at a competitive disadvantage if performance was disclosed.

  • There also were slippery slope concerns about how fund-level disclosures could evolve into portfolio-level disclosures.

Fast forward: Sequoia's fears were unfounded, as it has since tacitly acknowledged. Around a decade ago, it quietly re-added the University of Michigan to its LP roster, and subsequently brought the University of California back as well. No public pension has ever disclosed underlying portfolio company information.

  • But UTIMCO is the most notable, because it remains the gold standard of public LP transparency. Whereas UC Regents and many other public pensions report with an extended lag, UTIMCO is much more up-to-date, and enables disclosure requests via a dedicated web form.

The bottom line: Disclosure within alternative investments rarely leads to disaster, no matter how hard the industry fights to maintain its secrets.

Go deeper

Dan Primack, author of Pro Rata
Jul 28, 2020 - Economy & Business

Venture capitalists are split on the benefits of working from home

Illustration: Aïda Amer/Axios

Venture capital activity has persisted in the COVID-19 era, as investors and founders have accepted virtual meetings as viable alternatives to the in-person standard.

What comes next: If society returns to "normal" at some point next year, will that also apply to pitch meetings, board meetings, etc?

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines"Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode againFed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.

NRA declares bankruptcy, says it will reincorporate in Texas

Wayne LaPierre of the National Rifle Association (NRA) speaks during CPAC in 2016. Photo: Saul Loeb/AFP via Getty Images

The National Rifle Association said Friday it has filed for Chapter 11 bankruptcy and will seek to reincorporate in Texas, calling New York, where it is currently registered, a "toxic political environment."

The big picture: The move comes just months after New York Attorney General Letitia James filed a lawsuit to dissolve the NRA, alleging the group committed fraud by diverting roughly $64 million in charitable donations over three years to support reckless spending by its executives.