No, I haven’t seen sponsors defrauding or scamming investors. But if it could happen at Theranos, FTX, etc., I’m sure it could (and will) happen in the independent sponsors space too.
Here are some typical safeguards:
• QoE by a well-reputed provider
• References on the sponsor
• Overview of the other LPs
• Legal documents produced and reviewed by well-reputed advisors on all sides
Thanks to Henry Carter for the question 😅
