Online-marketing company said to tarnish Facebook investor's portfolio

Cuddly David Sze of Greylock Partners is the star VC of Web 2.0, with investments in Digg and Facebook among his portfolio. But he has a skeleton in his investing closet, a tipster says: An online-marketing firm called SoftCoin. Valassis, the coupon-distribution giant responsible for those hated inserts in newspapers, scotched an acquisition deal at the last minute, a tipster tells us, prompting heavy layoffs at SoftCoin. Venture capitalists get antsy about holding onto companies for too long, since they need to wind up their funds and return the proceeds to investors over time. Sze invested in SoftCoin in 2002. If SoftCoin goes under, will Sze's sunny disposition take a blow? Unlikely; we fully expect Sze to continue talking up his board-observer seat at Facebook. The tip: More »