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The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

In early 2011 an acquisition by a Fortune 500 company fell apart. based companies initially funded by venture capital between 2006 and 2011, 84% now are closely held and operating independently, 11% were acquired or made initial public offerings of stock and 4% went out of business, according to Dow Jones VentureSource. Communications.

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Venture Capital Term Sheets – Redemption Rights

Scott Edward Walker

Redemption rights are principally designed to protect investors from a situation where, after a period of time, their portfolio company is just moving “sideways” and, accordingly, is not an attractive acquisition target or IPO candidate. What Does a Redemption Rights Provision Look Like? This is a non-starter.