The "Open Marriage" Analogy
Last week, via email with one of our portfolio company CEOs, I compared VCs who invest in competitive companies to open marriages.
I've elaborated on that analogy on the Union Square Ventures weblog today.
Musings of a VC in NYC
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Fred, as an entreprenuer, I agree with you 1,000,000,000,000,000,000,000%
If nothing else, what VC can say with a straight face that there is no breach of fiduciary responsibility when one sits on the Board of a company while also having insider info on a competitor and not continuously cross-disclosing any/all such competitive info (a requirement that would make it impossible to invest in competitors -- that is, if one is honest)?
Also, hell, last time I looked, as a founder or exec or CEO (or even staff member) I am required to sign NDAs and Non-Competes and the like. It would feel mighty bad to know that my Directors/investors don't feel honor-bound to not disclose and not compete. Or maybe they will let me off the hook of my pledges?
This subject rates a huge BLECCCH in my book. Talk about massive morale problems. Talk about massive dysfunctional Board relationships.
Posted by: steve | January 15, 2007 at 03:18 PM