Why are venture capitalists so eager to seem like “cool moms” to founders? Because competition hurts leverage. (Or in VC parlance, there’s too much money chasing too few deals.) That dynamic isn’t likely to change, but I predict recent events might bring strong governance back into fashion. See the disappointing stock performance of Blue Apron and Snap, two companies with share structures that deny voting rights to investors and in Snap’s case, give total control to the founders. Blue Apron slashed its proposed IPO price by 34% before its June offering; six weeks later, its shares were trading 50% below that. Meanwhile Standard & Poor’s and FTSE Russell declared that, because of Snap’s nonvoting class of common shares, they would exclude the company from their indexes, blocking its access to an entire class of passive investors.

http://fortune.com/2017/08/14/founder-friendly-startup-investing-is-over/?utm_source=CB+Insights+Newsletter&utm_campaign=ce65e9ba57-MonNL_8_21_2017&utm_medium=email&utm_term=0_9dc0513989-ce65e9ba57-86647309