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Governance lapses, ​irregularities prompt LPs to drive changes in startup investments

​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.

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