Startup Funding Espresso -- Conflicts of Interest
Conflicts of Interest Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting up a VC fund, beware of conflicts of interest. Funds associated with other groups such as universities, accelerators, or incubators may find a conflict with other funding activities in that group. These groups are often focused on helping the startup launch. This leads to funding startups that may not qualify for funding. Make sure the fund is independent from the group and makes decisions based on the investors' best interest. Set up the fund separate from the group with different leadership. The fund could have first rights for any deals related to the group but is not obligated to invest. Define the relationship between the group in the fund's documents, so it\u2019s clear to the group, the fund managers, and the Limited Partners. Also, review the fund manager's other commitments and relationships to make sure they are free and clear of other incentives. If the fund manager runs other businesses, vet those businesses for any conflicts of interest as well.\xa0 \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .