How Venture Funds Work
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Most successful tech startups end up sitting across the table from a venture capital (VC) fund somewhere along their journey. With a little luck, they also enter into negotiations about a round of funding. But most of those startups know little, or nothing, about how venture funds actually work.
Like most business negotiations, lack of knowledge about the opposing party creates a disadvantage and potential for missed opportunities. The purpose of this article is to educate you about how venture funds work – how they’re structured, how they operate and how the economics work between them and their investors.