…a new wave of venture investors, particularly sovereign wealth funds and other international LPs, have stepped in to help fill the gap, changing LP dynamics

The famous tale tells the story of an emperor who is conned by a unscrupulous tailor, who tells him that his new clothes are only visible to those that are clever and worthy of their positions. Neither the emperor nor his subjects want to admit that he is naked for fear that they will seem ignorant or incompetent.

“The composition of the investors does make me a bit nervous,” said Piette. “There are certain new investors flooding in that are afraid to admit that they can’t see the emperor’s new clothes.”

via VC Investors Worry About The Emperor’s New Clothes – Venture Capital Dispatch – WSJ.