The last few years have put a strain on this equation. In an era of greater transparency and social graphs, VCs are often “referenced” by their earlier founders when looking at a new deal or getting new deal flow. In an era of cheap money with many different sources of capital, there is more competitive pressure on a traditional VC to make sure his/her deal flow and references are glowing, or risk the reputational damage from being associated with a disgruntled customer. The result has been, in my general observation, an environment in which being “founder-friendly” is of such vital reputational interest to the VC that it can oftentimes trump their fiduciary responsibilities. Further fueling the friendly vibe is the cheerleading and promotion required to score a “markup” for a portfolio company to improve one’s own stats as a VC.