(The Information) the increasingly bloodied market for tech startups is strengthening the hand of one group of investors: the wealthy individuals and institutions that put money into venture capital funds.
These limited partners are seeking better terms, such as guaranteed access to startup deals, reductions in the fees they pay the VC firms and even stakes in a fund’s management company, so they can maximize their share of profits from successful investments, several fund managers told The Information. Less-established, early-stage fund managers are more likely to run into difficult fundraising negotiations with LPs.
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