Goodbyes are never easy.(pulling the plug on startup companies)(Brief Article)

Byline: Vyvyan Tenorio

Among the harsh decisions venture capitalists must face these days is when to pull the plug on a portfolio startup.

In many cases, the graceful exit is considered the best option. But it is not one founding entrepreneurs readily accept.

"It's a difficult decision to reach and a difficult decision to execute," acknowledges Bradford Farkas, co-founder and managing partner of i-Hatch Ventures, a New York-based investor in early stage Internet companies.

"You need more control as investors," Farkas said in an interview after speaking to a roomful of executives last week in a New York Venture Group forum. "And you need to be able to convince the management that it's the right decision."

Farkas should know. The 38-year-old former founding partner of Lazard Technology Partners, the venture …