Venture capitalists pass on board seats to secure deals in hot crypto start ups(ft.com)
ft.com
Venture capitalists pass on board seats to secure deals in hot crypto start ups
https://www.ft.com/content/8f8bb265-8d86-400c-a9d2-780a343f0ca8
3 comments
Board seats come with a duty of loyalty meaning you can only back one competitor. In a world with unlimited investment capital, it might be more rational to back all the best companies in a particular space rather than just a single one. The lack of board seat reduces the investor's obligation to the company and frees up the constrained resource which is partner capacity. Rational.
This is sure to turn out well /s