Venture capital funds can struggle due to managerial incompetence, poor decision-making, and lack of experienced leadership.
Economic downturns, like recessions, can adversely impact venture capital funds by causing startup failures and investor nervousness.
Overpaying for stakes in startups can lead to failure as massive returns are required, emphasizing the need for fair price negotiation based on realistic growth expectations.
Failure to provide startups with sufficient follow-up funding can result in collapse, underscoring the importance of supporting growing companies adequately.