Source: TechCrunch
A coordinated wave of founder testimonies naming specific VCs for predatory behavior, term sheet manipulation, and misconduct is shifting power dynamics in a market historically defined by asymmetric information and founder desperation. This breaks the informal omertà that has protected venture capital's reputation for decades. When founders lose more by staying quiet than speaking out, the reputational cost of past abuses finally compounds. The actual test is whether this translates into LP pressure on firm commitments and board-level consequences—which would require LPs to act against their own portfolio managers.