Why it’s hard for VCs to sniff out financial irregularities and how they can do better
Recent reports of financial irregularities at startups have generated several debates around rethinking corporate governance at startups, with many calling on venture funds to be more diligent, and vigilant. We would be remiss to undermine the role that today’s venture funds play in the startup ecosystem. But, in this context, it is important to reiterate what that role is.
Investors take high risk for high rewards: Venture funds back early-stage companies with untested business models and teams.
Investors take high risk for high rewards: Venture funds back early-stage companies with untested business models and teams.