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

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

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.

Tushar Goenka

August 02, 2023 / 14:28 IST

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

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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