Holding: Courts may save startups from redemptions
NEW YORK (Reuters Breakingviews) - Favoring antsy venture capitalists could be asking for trouble. Cashing out these early financial backers of fledgling firms on demand can leave longer-term investors in a lurch. A case involving onetime dot-com darling Oversee.net and Oak Hill Capital suggests some judges find the practice potentially disloyal to startups and their owners. It’s an overdue warning about the damage such conflicts of interest can cause.