Rob Go, a Boston seed-stage investor, writes about venture capital, how investors decide, starting companies and the Boston tech scene.
HN links it for his post asking whether Facebook will become the next Yahoo, and for his view on venture capital and LPs.
From the LP pov, it boils down to capital concentration. Most LPs I've spoken with are not that different from Michael Kim (LP from the article) in that they are for capital concentration. It is the most controversial part of the offering.
Reference:
http://25iq.com/2013/01/16/charlie-munger-on-investment-concentration-versus-diversification/
http://robgo.org/2013/10/21/decision-making-speed-of-big-funds-vs-seed-funds/
https://twitter.com/trengriffin/status/264789822982471680
https://twitter.com/sama/status/458094667972624384
That said, in the end, real performance trumps everything.
Food for thought about FB's longer term viability: http://robgo.org/2012/01/29/will-facebook-be-the-next-yahoo/