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Pay-to-Play Becoming Less Common in Venture Capital
January 24, 2012 /
To motivate investors to reinvest in additional rounds of financing at start-up companies, venture capital deals often include "pay-to-play" provisions. Under these provisions, investors that don’t reinvest have their preferred stock converted to common stock or otherwise made less preferential, VC Experts explains.
By Scott Shane
Full Story: http://smallbiztrends.com/2012/01/pay-to-play-becoming-less-common-in-venture-capital.html
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