Hacker News new | ask | show | jobs
by edrtfgdr 6204 days ago
I worked for a famous consultancy that started doing this. They had startups within the company - them acting like a VC and the inventors owning equity.

Then times got tough at the parent so they introduced a 3month notice period, during which they charged you to the startup at full consultant rates - so all their 'investment' immediately went back to them as billable hours. Then they introduced a 'recruitment fee' where for each person leaving to go to the startup the startup was billed 1 years salary to cover the costs of replacing the person. The VC arm of the parent also managed other funds and these were invested in the startup - and immediately billed back to the parent in some way. Eventually the parent went bust before the SEC could investigate all this.