Following a Bloomberg report that the Department of Justice is investigating venture firm [PERSON_NAME] for holding board seats with rival AI companies, VCs told Tech Crunch they were baffled. On the latest Equity podcast, [PERSON_NAME], [PERSON_NAME], and I were similarly puzzled. While conflicts-of-interest warrant attention, panelists questioned why this rose to the top of the DOJ’s priority list. The news also surprised observers due to [PERSON_NAME]’s quiet stance, contrasting sharply with its highly active policy postings during the Trump administration years.

One guest clarified that while founders dislike competing board seats, startups frequently pivot—especially during the current AI boom. Thus, a year-long investigation into shifting corporate strategies feels unusual. Specifically, [PERSON_NAME] sits on the Databricks board, and Partner [PERSON_NAME] serves on Fivetran. At a firm making hundreds of investments, such overlaps are understandable. Still, investors remain skeptical of the probe’s timing and scope, speculating it might instead set an example for smaller venture firms to follow.