Is the Venture Capital Industry Dodgier than Banks?

Venture Capital Industry worse than banks? Guest post from Jonathan Rochford, CFA, Portfolio Manager, Narrow Road Capital Pty Ltd

Ever since the financial crisis banks have delivered a constant stream of scandals. But in recent months there’s been a steady stream of scandals in the venture capital industry that rivals the worst excesses of banks. Venture capital firms and the companies they invest in are playing fast and loose with other people’s money and with the truth. In many ways, the problems remind me of the heady days of investment banks as portrayed in Liar’s Poker and The Wolf of Wall Street. What both industries have in common is the predominance of young men, fuelled by money and...