I imagine just about any entrepreneur who's struggled with venture capitalists over some of the more onerous terms found on the term sheets they receive will read this Red Herring article and laugh (somewhat bitterly, perhaps). It seems those poor, poor VCs who have been sticking entrepreneurs with crazy liquidation preferences and other things that often take most of the incentive away from entrepreneurs are now complaining themselves about the terms that investment bankers are putting on IPO deals. In particular, they're upset about lockups -- which are perfectly standard for employees who own stock. However, many VCs who understand the nature of bubbles want to be able to cut and run at the IPO. To be fair (yes, before you VCs complain), VCs who use these methods will often defend them as reasonable -- and there are defenses of these practices that make some sense. However, the same is true for bankers and the lockups they put on VCs. So, really, it's just VCs getting a taste of their own medicine -- something some entrepreneurs may feel VCs don't get often enough.
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