4 ridiculous demands of venture investors

    Venture investors feel their power over startups, because sometimes they add very strange requirements to deals before they are closed. Below are the four most ridiculous demands that a journalist from Inc. made and Re / Code Jason Del Rey.

    image

    1. Startup pays all payments related to investing


    For many years, venture investors have shifted their responsibility to entrepreneurs to pay taxes and other payments related to the investment process. Some investment firms have stopped this practice, and some still accept money from the companies in which they invested.

    2. The startup must place the name of the venture company or the name of the investor on the main page of the site


    Sounds sad. If you are a good investor and the founders of companies value you, then there should be no recognition problems. The homepage of the company you invested in is not the best choice to demonstrate your recognition.

    3. The investment offer is valid for a limited amount of time, and the startup must hire a top manager at the request of the investor


    Some investors believe that it is right to limit their investment proposal in time, and add to this the requirement of hiring a certain person for a certain high position in the company.

    4. Startup must relocate to San Francisco Bay


    San Francisco and Silicon Valley are the undisputed kings in the startup world thanks to the talents who live and work there. But today, young entrepreneurs can work in any city in the world, from New York to Stockholm and Delhi. At the same time, some investors consider it their duty to force the company in which they plan to invest, to move.

    Also popular now: