

Simple n00b question about funding - utnick

Lets say I start a startup on my own. Some VC comes along and decides to fund my company 10 million for 40% equity.<p>Do I personally get to keep any of that 10 million? If the startup fails do I owe him his 10 mil back? Can I pay myself a huge salary?<p>( i know this is a bad attitude to have, and i'm just using this as an example to illustrate my question. Trying to learn more about the process )
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pg
No, no, and no.

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mikesabat
No, absolutely not. VCs aren't stupid and you sign a contract with them. If
you were a VC would you leave that door open?

<http://www.venturehacks.com> \- read this blog.

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utnick
yea i kinda figured that

but its hard to figure what some of these web 2.0 companies are doing with
millions of funding if not paying the founders big 6 figures

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aston
I think you could swing paying yourself 6 figures with an investment of $10
million assuming you were one of only a few employees.

