Drive-By Deal

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DEFINITION of 'Drive-By Deal'

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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