Why Does Oren Zeev Invest Across Funds?

Oren Zeev invests across his funds, which he says most other managers will not do. The objection is a conflict of interest. If a new fund puts money into an older fund's company and it fails, it can look as if the new fund was used to bail out the old one. If it succeeds, it can look as if he took advantage of the first fund's limited partners. His answer is that those backers have to trust him. If they do not trust him, they should not invest.

He says he will not use a new fund to rescue an old one, and he will try to get the best deal for the new fund. The company takes the money only if the deal makes sense for the company, so the CEO, not the manager, looks after the older fund. He does not want a rule that a third party must invest alongside him on the same terms. He does not want extra rules at all.