Internet Profit

Startseite » Uncategorized » 3 Venture Capital Rules that Can Be Broken for Hot Startups

3 Venture Capital Rules that Can Be Broken for Hot Startups

Archiv

David Cummings on Startups

Reading online there’s a number of „rules“ about venture capitalists and how they operate. Most of the information is solid, but there are a handful of edge cases that are more nuanced for hot startups. Here are three ideas about how venture capitalists operate that aren’t as black and white as commonly presented:

  • Signing Non-Disclosure Agreements (NDA) – Most of the time, VCs won’t sign a non-disclosure agreement, and rightfully so since they see so many startups on a regular basis. Now, if you’re in super high demand, VCs are clamoring to invest, and you truly have confidential information like outstanding financials, VCs will sign NDAs.
  • Investing in LLCs – Limited partners, the investors in venture capital funds, are often endowments, charities, and other non-profits that don’t want pass-through losses and the headaches of K-1s, and thus require investing in C-Corps. VCs won’t invest directly into LLCs, but if the deal has…

Ursprünglichen Post anzeigen 188 weitere Wörter


Schreibe einen Kommentar

Trage deine Daten unten ein oder klicke ein Icon um dich einzuloggen:

WordPress.com-Logo

Du kommentierst mit Deinem WordPress.com-Konto. Abmelden / Ändern )

Twitter-Bild

Du kommentierst mit Deinem Twitter-Konto. Abmelden / Ändern )

Facebook-Foto

Du kommentierst mit Deinem Facebook-Konto. Abmelden / Ändern )

Google+ Foto

Du kommentierst mit Deinem Google+-Konto. Abmelden / Ändern )

Verbinde mit %s

%d Bloggern gefällt das: