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4 ridiculous demands of venture investors

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

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1. A 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 are still accepting money from the companies in which they have invested.

2. A startup must place the name of the venture capital firm or the investor name on the main page of the site.


It sounds sad. If you are a good investor and the founders of companies appreciate you, then there should not be any problems with recognizability. The main page of the company in which you have invested is not the best choice to demonstrate your awareness.
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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. The startup should move to San Francisco Bay


San Francisco and Silicon Valley are indisputable 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. However, some investors consider it their duty to make the company in which they plan to invest, move.

Source: https://habr.com/ru/post/297098/


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