Definition
Investors who prey on distressed startups, offering unfavorable terms when founders are desperate. They prefer the smell of burning runway in the morning.
Example Usage
When we had two months of runway left, vulture capital came circling with term sheets featuring 3x liquidation preferences and full ratchet anti-dilution.
Origin
1980s financial slang, combining 'vulture' with 'venture capital'
Fun Fact
Some vulture capitalists specialize in 'zombie startups,' offering just enough money to keep them alive while extracting maximum control and preferential terms.
Source: Financial industry pejorative terminology
Related Terms
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See “vulture capital” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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