The Rise Of Vulture Capitalists

from the watch-out... dept

With venture capitlists settling down a bit, and plenty of dot coms desperate for money, here come the vulture capitalists. While this nickname has been applied to any venture capitalist in the past, now some are taking it a little further. These firms look for distressed dot coms and offer to give them money on horrible terms. They knock valuations way down, and force certain aggressive milestones to be met, but some companies are willing to take the risk (while many others are not). I like the one deal where a company would get money, and have to meet certain milestones or the vulture capitalist would get 100% ownership. Quite a deal, huh? When will dot com CEOs start waking up with the severed heads of horses in their beds?

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