Tim Oren On Unintended Consequences

Tim Oren at Pacifica Fund just posted the most well argued discussion I've seen about the blowback from the disclosure of venture returns. It begins:

If you follow the newspaper business pages, or take a business journal, in the last year you might has noticed a few breathless stories on new revelations of the dark secrets of venture capital management. If you flipped past, dismissing this as part of the general media schadenfreude over the high technology let-down, it's time to listen up. What you don't know can hurt you, assuming you pay taxes.

Tim does a great job of analyzing the long-term effects of forced disclosure (the "unintended consequences") and he's dead on in the ultimate conclusion: venture capital will just route around the disclosers.