Venture capitalists as directors: challenges of serving on the board of an insolvent company

Over the past few years, the private equity market has invested billions of dollars into seemingly promising ventures that are now on the brink of insolvency. As fund managers and private investors who sit on the boards of directors of such companies agonize over the potential loss of their investments, they must also wrestle with competing concerns as board members. This article analyzes the often conflicting positions of a venture capitalist who is faced with the stark reality of protecting an investment while serving on the board of a company that is slipping toward insolvency.

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