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In Silicon Valley, Founders Fight for Control - WSJ.com
July 10, 2012 | WSJ |By JOANN S. LUBLIN And SPENCER E. ANTE.

There's a power struggle underway in Silicon Valley. At stake: Power itself.

Over the past two years, one of the most influential venture-capital firms has turned the usual rules of start-up investing on its head. Andreessen Horowitz is telling entrepreneurs it prefers situations where the founders have controlling stakes, reckoning that they'll be better able to resist outside distraction and focus on making great products....But Andreessen's approach is also exposing a rift in Silicon Valley, where a group of young and relatively untested entrepreneurs have maintained control over their rapidly growing companies. For now, venture investors are relatively content with the arrangement, as they've made immense sums along the way. The growing worry is that the setup leaves investors little recourse if a highly empowered CEO goes off track.
Silicon_Valley  Andreessen_Horowitz  founders  Joann_S._Lublin  boards_&_directors_&_governance  start_ups  venture_capital  vc  activism  off-plan  investors  distractions 
july 2012 by jerryking
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