Infighting at Uber puts governance risks in spotlight
August 21, 2017 | Arleen Jacobius | Pensions & Investments
The very public battle surrounding Uber Technologies Inc. is bringing to the surface venture capital investors’ concerns that the best and brightest of executives won’t work for even trophy portfolio companies when those companies have a reputation for poor corporate governance.
A portfolio company’s failure to attract top talent affects returns of venture capital, private equity and other investors. Hiring new talent will be the first step on Uber’s road to finally going public. An initial public offering is important for early investors like venture capital firm Benchmark Capital Partners that had been holding what might be its most valuable yet-unrealized investment for nearly 10 years.
Frustration over holding onto large unicorn investments that continue to stay private — with no signs of going public — could lead to more investor activism, especially from the venture capital and private equity investors whose funds’ lives are coming to an end, said Rohit Kulkarni, head of research at San Francisco-based secondary market private shares trading platform SharesPost Inc.
