Synopsis
An LP (an individual or an entity) is the money behind a VC or private equity fund. In the past 12-18 months, allegations of governance lapses or financial irregularities have surfaced at startups such as BharatPe, Trell, Zilingo, Mojocare, Phablecare and 4B Networks. Prompted by these reported instances of mismanagement and lack of oversight, LPs are driving changes in their relationships with VCs who recommend and manage their investment funds.
We found out about the issues at GoMechanic through our venture capital (VC) partner just before it became public,” says a senior executive from a family office, who acts as a limited partner (LP) in VC funds in India. The official was referring to the disclosure of financial irregularities made by the founders of GoMechanic, an automobile servicing startup, back in January. “Our first reaction was to assess if we could recover any part of our
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