Word Spy - drive-by VC

drive-by VC

n. A venture capital firm or investor that supplies money to a new company, but does not offer any other type of support or expertise.

Example Citation:

"'In a time of 'drive-by VC' we are differentiated by our active, involved investment approach and the strength of operating skills we bring to the table,' said Jon Feiber, a general partner of MDV and co-managing partner of the funds."
—Colleen Martel, "Mohr, Davidow Ventures Announces MDV Fund VI," Business Wire, November 22, 1999

Notes:

You occasionally see this phrase with the VC part spelled out:

"They provide the capital and they will do the board service, but are less inclined to roll up their sleeves and really work the deals they way they have traditionally...Some chief executives of venture capital backed companies are calling them 'drive-by venture capitalists.' They drive by, throw out the money, and attend the board meetings by telephone. That is not very good."
—Chuck Martin, "OC's venture capital dean," Orange County Business Journal, July 24, 2000

Category:

General

Posted on February 2, 2001