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Anonymous

Hey I am on Medial • 1y

What happens when a company fails to generate revenue after raising funds from a VC. Are the company owners obliged to any amount in return for investors And how will investor get an exit if the company is a loss making company

Akshat Agarwal

Hey I am on Medial • 1y

If there is a security clause ...you follow whatever the security clause says ...if it says return x amount you have to do it...if there is no such clause... The investor loses his money unless the startup gets back up as the investor took a risk and the gamble didnt work out in his favour

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