Governance is critical in venture capital as it influences decision-making and investment outcomes. Ethical practices must be upheld to maintain trust and reputation in the market. Venture capitalists regularly deal with confidential information and must decide with integrity to avoid conflicts of interest. The adoption of clear governance structures is required to ensure accountability and transparency in operations and investment decisions. Startup financing began to resemble the modern-day venture capital industry after the passage of the Investment Act of 1958. The act enabled small business investment companies to be licensed by the Small Business Administration, which had been established five years earlier. More information https://financial-equity.com/investment/invest-in-stocks/can-you-lose-more-than-you-invest-in-stocks-understanding-risk-in-the-stock-market/ Fact checked by Suzanne Kvilhaug. Coburn Ventures, LLC (Pleasantville)