The venture capital industry needs more transparency and ethical behavior around vendor relationships. Too many emerging managers are pressured into expensive contracts before they have commitments. This pattern must change for the health of our ecosystem. We are building a future where first time managers can focus on what matters - finding great companies and supporting visionary founders. Predatory vendor relationships damage trust and take resources away from positive impact investing. The solution starts with education and community support. Experienced managers must share their lessons learned about vendor relationships openly. New managers need a strong network of peers to validate vendor claims and pricing. Success in venture capital should come from backing transformative companies, not from exploiting new managers. We envision a future where vendor relationships are transparent, fair and aligned with fund success. This shift is already beginning. The next generation of venture capital will be built on trust and mutual support. By working together and sharing knowledge, we can create an ecosystem that lifts up ethical behavior. The time for change is now. We must protect new managers as they build vision-aligned firms. Their success in deploying capital to mission-driven companies matters too much to be diminished by predatory vendors. Together, we shall build a better way forward.
Ethical VC- I am here for it!!
Raúl Quintana
7mo
Adeo, excellent perspective, and Elizabeth is very insightful. For a proper flow of finances for operations, administration, and return on investment, there must be transparent operations and proper relationships with senior and junior executives.
It's inspiring to see the way you know venture capital has and will change the world for the better, Adeo Ressi. Keep the transparency going!