@nounishprof

For a couple semesters I taught a Venture Funding class. My focus tended towards the legal aspects and I had a VC General Manager co-teacher to bring that side of the experience. One big piece we always focused on was the fiduciary duty of founders to their investors. Legally, founders who accept investor capital owe fiduciary duties of care to act in good faith and to manage funds to maximize profits or, until revenue generating, to at least minimize downside in order to extend runway. Even in a wind down or exit, returning funds is a priority otherwise there can be serious legal consequences.

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