Companies such as Enron or WorldCom have demonstrated stunning lapses of mtegnty. I decided that Funk Ventures would be a purpose-driven venture capital firm, one thatwould work to mutually benefit the end consumer, the portfolio company, the limited partner, and the venture capitalist. We invest in markets we believe have a significant and positive impact on people, society, or the environment, such as health and wellness, medical devices, and clean technology. This philosophy, and the internal and external environments it has created, have helped us create investment successes that go well beyond just good returns. Significant Misconceptions Venture capital is truly the backbone of our economy and has been for a long time now. Venture capitalists take significant risks and support unproven businesses, demonstrating the spirit with which past rulers funded fleets of ships to explore foreign lands. Taking significant risks in order to propel growth is fundamental to American capitalism and, indeed, to America itself. Discounting venture capitalism's place in society, however, is only one of many misconceptions about the industry. Entrepreneurs often think venture capitalists are only good for writing checks. Those who have worked with a venture firm to successfully bring a company to an exit, however, know they have the potential to be far more. Most venture firms, especially those that focus on early-stage opportunities, are value-add investors. Much of the value of a venture firm lies in its network of relationships and the expertise and experience of its managing partners. Many entrepreneurs are also oblivious to the fact that limited partners often have a significant impact on how the venture firm is run. Often, a venture capitalist will design the investment and corporate policies of his or her fund around the requirements and investment policies of major limited partners. Entrepreneurs should understand if, and how, this can affect their investments. Finally, a common misconception is that venture capitalists don't understand entrepreneurs' problems. On the contrary, many venture 25