Managing a Mail-Order Marriage: Building Trust With Your VC Investor
- Topics:
- Venture Capital
- Tags:
- Conflict,
- Potential,
- Management,
- Mail-order,
- Investor,
- Financial Accounting,
- Finance,
- Ewing Marion Kauffman Foundation,
- Entrepreneurship,
- Entrepreneur,
- ...
- Source:
- Ewing Marion Kauffman Foundation
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Overview: Article states out that it is important to recognize that the potential for conflict of interest is inherent to the relationship due to the different obligations of the VC and the entrepreneur. These conflicts arise chiefly during the company valuation for financing and when planning the VCs' exit strategy. Even as trust evolves, the potential for these conflicts won't go away. Consequently, it is important to understand why the potential for conflict exists. A good relationship between entrepreneurs and their VC investors depends on trust and particularly until that trust is established a reasonable balance of power and an appreciation of the other's needs and motivations. With that, and some measure of success, one may well be a management player that the VC recommends to one of its future portfolio companies. For further discussion read on the article.
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Format: HTML | Date: Jan 2003 | Pages: 1
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