Board observation provides better manager diligence than LP reference calls
Hunter Somerville · Global VC's Honest Opinion About India's Startup Ecosystem Explained | Stepstone Group Partner · Jun 5, 2024 · at 6:19
Hunter Somerville, Partner at StepStone Group, explains how direct investing and board observer seats offer clearer diligence on venture managers than reference checks.
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“And on top of that, because we do direct investing, we're oftentimes board observers within companies, and we actually see the managers in action. So you see who comes to board meetings and who has nothing to say or isn't adding value or doesn't even show up to board meetings. Versus those that are actively involved, strategically giving advice, providing customer introductions, being a really hands-on collaborative partner to founders. And that's better than any reference call you'll ever do, you know, because with references, people are inclined to always say good things and not give you a great sense for who's additive or make comparisons between board members.”
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