drive-by deal

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.

Notes:

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.

See also: Exit Strategy, Venture Capital, Venture Capitalist

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drive-by deal

A short-term investment by a venture capitalist in a start-up company.