How Deimos’s Demise Highlights What Can Go Wrong With Start-Ups

When gold-plated backers become a hindrance, not a help.

2016-autumn-michelle-celarier-infocus-collapse-large.jpg
2016-autumn-michelle-celarier-infocus-collapse-article-page.jpg
Illustration by Renaud Vigor.

When Deimos Asset Management announced in September that it would close its doors, co-founder Loren Katzovitz blamed the small hedge fund firm’s shutdown on a “challenging” fundraising environment coupled with the high cost of doing business.

To continue reading, subscribe now to Premium Journalism. Already a subscriber? login.