20VC: Why Fund Sizes Should Be Smaller, Should Founders Also Have Their Own Funds, Is Emerging Markets Investing Gone, Is Fintech Investing Dead & Who Will Be The Winners and Losers in VC in the Next 10 Years with Sheel Mohnot, Co-Founder @ BTV

VC Tension

The relationship between venture capitalists and founders often faces tension due to differing expectations and approaches. Sheel Mohnot notes that many VCs tend to be overly prescriptive, which can frustrate founders who feel micromanaged 1. He emphasizes the importance of being supportive without dictating actions, as this can lead to misalignment and dissatisfaction. Additionally, tension arises between general partners (GPs) and limited partners (LPs) when financial commitments become burdensome, potentially leading to misaligned priorities 2.

   

Board Dynamics

Board interactions play a critical role in the startup ecosystem, yet they often fail to meet their potential. Sheel shares that while boards can provide valuable reflection opportunities for founders, they frequently become overly structured and less supportive 1. He highlights the value of experienced board members like Jeff Horn and David Lawye, whose insights are often underappreciated by younger members 3. These seasoned professionals bring a wealth of experience that can guide startups through recurring challenges.

   

Founder Investments

The practice of founders investing in ventures while running their own companies presents significant challenges. Sheel argues that founders leading investment rounds can neglect their primary responsibilities, especially during crises like the SVB incident 4. He stresses the importance of focus and accountability when managing external capital, as divided attention can lead to conflicts of interest. Additionally, Sheel advises founders to consider taking secondary options cautiously, ensuring they are building sustainable businesses before cashing out 5.