Lisa Yao

Lisa Yao, a newly minted Partner at Venerable Ventures, is poised to lead her first major investment in Generative Solutions, an AI-driven healthcare technology company. As the deal approaches closing, Yao learns from the founder, Matt Larkin, that he falsified parts of his educational background. She must determine whether to proceed with the investment in light of these disclosures, balancing her ethical responsibility and the implications for her firm’s reputation.

Simultaneously, Yao is involved with WorkUp, another portfolio company, which is experiencing a wave of employee resignations. WorkUp’s CEO, Seth Hedgefield, attributes the turnover to performance issues, but further inquiry by Yao reveals allegations of a hostile work environment and inappropriate conduct. These revelations create an additional layer of complexity as Yao considers the responsibilities of a board member and the best course of action for the company’s future.

The case highlights the intersection of ethics, governance, and stakeholder management within the venture capital context. It challenges students to consider how to navigate professional and reputational risk, balance competing interests, and maintain personal integrity in difficult situations.