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Re:Ask HN : Where Does VC Money Really Go? by Irishsteve on Sunday October 16, 2011 @04:36PM (#3118233)
Based on my experiences in the UK, different start-up's get funding of 30 million etc. but the money is over X years as long as Y objectives are met. In actual fact the company is getting a fraction of that 30 mill each year therefore far less cash rich than the press release indicates.
Re:Ask HN : Where Does VC Money Really Go? by pge on Sunday October 16, 2011 @04:45PM (#3118247)
Milestone-based fundings like this are pretty rare in the US and usually in troubled or very high risk situations. Most vc fundings that you would hear about are straight up equity deals (cash received at closing).
Re:Ask HN : Where Does VC Money Really Go? by gojomo on Sunday October 16, 2011 @09:46PM (#3118896)
These are called 'tranches' and are very pro-investor. See the section 'Tranches are dumb' in this VentureHacks post:

http://venturehacks.com/articles/adam-smith

Re:Ask HN : Where Does VC Money Really Go? by xal on Sunday October 16, 2011 @07:12PM (#3118608)
Definely not the case in the examples above