Pay-to-Play Becoming Less Common in Venture Capital

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