VCs Investing in Competitors Is a Conflict, Not Just Business as Usual
zeeg · x · 2026-10-02
Zeeg amplifies a widely shared thread on VC conflicts of interest: taking a board seat makes an investor a fiduciary with access to a company's strategy, weaknesses, and plans—yet firms routinely invest in competitors, relying on professionalism rather than real information barriers or recusal policies to manage the conflict. The core argument: a conflict exists even without visible misconduct, because simply knowing one portfolio company is accelerating while another struggles inevitably colors decisions. The thread is prompting reflection in the AI startup and investing community.
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