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Re:Booted out of Bootup Labs by rdl on Thursday April 15, 2010 @12:45AM (#1267006)
It's pretty common for VCs to have the company being invested in pay for legal/research/etc. expenses out of the investment amount -- so you raise $500k and immediately pay $50k back to the VC for their costs.

It's weirder here due to the small scale of investment relative to the costs, and the non-cash services, but not totally implausible.

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