This study explores the interplay between venture capital and corporate governance, focusing on how VC influences governance structures and practices: Governance Enhancements: Venture capitalists often implement rigorous governance frameworks to protect their investments, ensuring robust oversight and accountability. Control Mechanisms : VC involvement can lead to more effective control mechanisms within startups, including board representation and performance monitoring. Long-Term Performance: Strong governance practices fostered by VCs are linked to better long-term performance and higher chances of successful exits.

The insights highlight the pivotal role of venture capital in shaping governance practices that enhance the stability and growth prospects of startups. For investors and entrepreneurs, this underscores the value of incorporating strong governance frameworks to achieve sustainable success and optimize investment returns.