Conventional clauses in venture agreements and why you should choose tokenization instead
🦄 Venture capital funds are often perceived as a definitive solution for raising capital, as they fund potentially profitable projects, which also imply a great deal of risk. It is, though, not a widespread practice to highlight their fatal flaws in media, when in fact, they are crucial, and incentives of such funds are mainly destructive.
The root of the problem lies in the fact that venture capitalists are attempting to recoup all the previously lost money spent on the failed or broken-even projects. The pressure investors put on business owners often results in fatal consequences. Apart from that, VCs offer a range of highly unprofitable terms in the contract, including liquidation preference and drag-along provision.
📰 After reading our recent article “Conventional clauses in venture agreements and why you should choose tokenization instead”, you will get to know the specifics of some crucial VCs terms and how to make a cooperation with such funds easier for your company at the very start. Of course, you will also learn about a more prosperous solution for nurturing your business.