Drive-By Deal
What Does Drive-By Deal Mean?
Slang referring to a deal in which a venture capitalist invests in a startup with the goal of a quick exit strategy. The VC takes little to no role in the management and monitoring of the startup.
Investopedia explains Drive-By Deal
A "drive-by VC" is a venture capitalist who does this type of deal.
Critics say a drive-by deal results in companies which are pushed towards an IPO even though they aren't ready. All because the VC wants to get its money out.
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