Venture Capital and Bankruptcies in The Deal
Lawrence Flick, partner in Blank Rome’s financial services practice group, discuss
Most start-ups avoid the bankruptcy route, instead going out of business or slowly fading away, while those deem
“We’re certainly starting to see venture-backed companies where venture capitalists aren’t willing to put more money in,” Mr. Flick said, adding that he is not yet convinced there will necessarily be VC-backed bankruptcies. Some are indeed restructuring, he adds, cutting costs, getting by on current revenue, going into hibernation.
Despite the unease, miserly exit markets do not necessarily mean more filings. Some companies that stall
“Small-Craft Advisory” by Carolyn Murphy appear