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A Letter To the VCs
- The supervision, legal due diligence, and audit play crucial roles in identifying corporate governance of start-ups, involving pre and post-investors' onboarding phases.
- During pre-investors' onboarding, it is important for VCs to ensure that condition precedents and subsequent clauses are determined and perfected by founders.
- VCs should appoint representatives with practical capabilities to follow up on commitments to strengthen post-investors' onboarding.
- Emphasizing consistent supervision, VCs need to appoint knowledgeable representatives who understand the business and risks involved.
- Utilizing AI in due diligence is recommended for efficiency, but the importance of human verification and governance must not be overlooked by VCs and management.
- VCs and start-ups must allocate resources for maintaining human oversight and implementing governance to protect confidential information when using AI.
- The focus on building a stronger corporate structure is crucial before implementing AI technology to ensure successful outcomes.
- The framework promotes a firmer governance system for start-ups, emphasizing the establishment of corporate governance frameworks for both investing and operating companies.
- It suggests creating a community-based environment to encourage awareness and proactive views among start-ups, especially in complex taxation systems.
- Encouraging two-way communication between employers and employees and empowering employees to share suggestions can enhance corporate governance and sustainability for start-ups.
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