Slang referring to a deal in which a venture capitalist invests in a startup with the goal of a quick exit strategy. The VC takes little to no role in the management and monitoring of the startup.
A "drive-by VC" is a venture capitalist who does this type of deal. Critics say a drive-by deal results in companies which are pushed towards an IPO even though they aren’t ready. All because the VC wants to get its money out.
Note: Venture capital is a type of equity financing that addresses the funding needs of entrepreneurial companies that for reasons of size, assets, and stage of development cannot seek capital from more traditional sources, such as public markets and banks.
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