zombie VC

Definition

A venture capital firm that's functionally dead but still managing old funds, unable to raise new capital but too undead to fully shut down. They're not investing in new companies but still collecting management fees from their limited partners.

Example Usage

That zombie VC from 2009 is still sending quarterly reports despite not making a new investment since Obama's first term.

Origin

Derived from 'zombie startup,' applied to underperforming VC firms

Fun Fact

Zombie VCs often maintain websites and social media presence to preserve the illusion of activity, hoping LPs won't notice they've been irrelevant for years.

Source: Venture capital industry terminology

Related Terms

Advanced

Down Round

A funding round where a company raises money at a lower valuation than the previous round, which is the startup equivalent of your house being appraised for less than you paid for it, except everyone on Twitter knows about it. Morale is measured in tears per employee.

🚀 Startup / VC

Beginner

bootstrapped

Building a company with personal savings, credit cards, and stress ulcers instead of venture capital—either a badge of honor or an excuse for slow growth, depending on your exit results. It's entrepreneurship on hard mode.

🚀 Startup / VC

Beginner

pay-it-forward mentality

The cultural expectation in startup ecosystems that successful entrepreneurs and investors should help newcomers, supposedly creating a virtuous cycle. In practice, it's often networking disguised as altruism.

🚀 Startup / VC

Intermediate

Churn Rate

The percentage of customers who cancel your service each month, also known as the number that keeps founders awake at 3 AM. A high churn rate means your product is a revolving door; a low one means customers haven't figured out how to find the cancel button yet.

🚀 Startup / VC

Beginner

founder vesting

A schedule requiring founders to earn their equity over time, typically 4 years with a 1-year cliff. The investor-imposed acknowledgment that founding a company doesn't mean you'll stick around to build it.

🚀 Startup / VC

Advanced

catalytic capital

Patient, flexible funding that accepts below-market returns to achieve social impact alongside financial returns, pioneered by organizations like Omidyar Network. Capitalism with a conscience, or venture capital with lowered expectations, depending on your perspective.

🚀 Startup / VC

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