Economics

tags : Education Philosophy, Philosophy

FAQ §

How it works (VC Funding) §

• <some fund> —> LP —> VC —> PVT LTD.
• LP : Only job of an LP is to manage money. LLP is limited in that they don’t manage money.
  • One would open an LP in an intention to borrow money from a source and return that back to the source while making some profit.
• <some fund> can be bank, some reach family, pvt ltd. So why would any rich org become a source of fund?
  • Because it wants to make a “societal” change and it possibly can’t do it on its own
  • So it’ll outsource the money to an LP who promises to fund VC working with startups/pvt ltd. working in those areas.

TODO What are OPTIONS, PUTS, STOPS etc? §