|
|
|
|
|
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. |
|