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by Robin_Message 4758 days ago
Hang on, if that's the rationale for it, aren't VCs essentially defrauding their own investors by forcing portfolio companies to pay what is really the VC's expense out of the money that's just been invested in them?
1 comments

How is it fraud if it's a negotiated and agreed-upon term? IMHO, it's really just called 'being a dick'.
Fraud against the VC's own investors – they are spending money on lawyers for a deal, which is logically an expense of the deal, but accounting for it as a productive investment, for which they receive commission.