Abstract
Venture capital (“VC”) is repeatedly described as one of the “crown jewels” of the U.S. economy for its role in financing startups and innovation. However, recent corporate scandals, including fraud, have exposed a darker side of the VC industry and the startups in which venture capitalists (“VCs”) invest. For example, Theranos received $686 million in VC funding yet proved to be nothing more than a “house of cards” once it came to light that Theranos falsified blood test results. When Theranos founder Elizabeth Holmes was convicted of fraud, many VCs tried to distance themselves, saying Theranos was an exception and that most of Theranos’s financing did not come from VC. Nevertheless, in the wake of Theranos, fraud and mismanagement of VC-backed companies has continued.
Document Type
Article
Publication Date
2024
Recommended Citation
Ryan A. Ashburn, Venture Capital's ESG Problem, 58 U. Rich. L. Rev. 513 (2024).
Included in
Banking and Finance Law Commons, Business Organizations Law Commons, Science and Technology Law Commons