ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION

We have seen this story play out again and again. An entrepreneur hatches an idea, then looks for independent sources of funding to grow and scale the business. Blame the practice of independent venture capital (VC) firms dedicating a lot of focus and energy on “exit strategies” as the first and foremost question in structuring an investment, a practice that could actually be undermining instead of fostering entrepreneurship. 

Camillo Sicherle is an Attorney of Law in São Paulo, Brazil.