VCs Get Creative

from the raising-good-money-to-throw-after-bad dept

As venture capitalists are stuck with a few companies they like, but who can't go public, some are raising supplemental funds which are specifically designed to invest add-on rounds to companies already in the VCs portfolio. These appear to be throwing-good-money-after-bad funds. While I understand why it's being done, I think this is (once again) a case where easy money may make it difficult for businesses to make the key decisions they need to, in order to figure out how to turn their companies into real businesses.