John Ketchum, who runs Corporate Programs at our portfolio company TicketsNow, reminded of this quote which is most relevant to yesterday’s post. Underneath all of the legal wrangling and finger pointing there lies a basic question: Where does power lie in a venture board?
After many years in the business, I have two rules about this:
1) as long as the company is burning cash, the VC’s have significant leverage.
2) entrepreneurs have as much power as they have alternative funding sources.
2) VC’s that feel inclined to run a business are in for a rude surprise in the end.