Based on a specific algorithm, and member complaints, used by founder Adeo Ressi, a list of `blacklisted' venture firms has been released by TheFunded - the site that provides for incognito review and rating of venture capitalists by entrepreneurs.
Saying that the `blacklisted' VCs would be banned from the site's leaderboards, Ressi specified the three reasons that were taken into account for blacklisting a firm - namely, suspicious reviews by CEOs in their portfolio; threat of legal action to TheFunded members; and incapability of making new investments.
While the long list of venture firms blacklisted due to suspicious reviews includes names like Alsop Louie Partners, Bay Partners, Benchmark Capital, and Clearstone Venture Partners among others; the ones blacklisted for legal threat includes EDF Ventures, GreenHills Ventures, and
IFC Ventures; and the firms blacklisted due to lack of new investments includes Appian Venture Partners, ArrowPath Venture Capital, Blueprint Ventures and Centennial Ventures.
All the blacklisted firms would remain in TheFunded's database, with their profiles flagged with marked warnings. While firms on the suspicious reviews list will be cleared after a 90 to 120-day period; those on the legal threats list will be removed after 90 days after the last threat or dropped lawsuit; and firms on the lack of investment list will be cleared after the submission of investment proof in the last four weeks.