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HomeNewsBusinessCorporate governance lapses at start-ups prompt LPs to opt for direct investments; VCs lose out
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Corporate governance lapses at start-ups prompt LPs to opt for direct investments; VCs lose out

Tushar Goenka   •

As professionals who charge a fee, VCs are expected to be on top of things at the companies they fund. Laxity on this front has seen LPs get into action.

Corporate governance lapses have forced LPs, who put their money into VC funds, to rethink their strategy as they demand answers from fund managers on what went wrong.

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