n. A venture capital firm or investor that supplies money to a new company, but does not offer any other type of support or expertise.
They provide the capital and they will do the board service, but are less inclined to roll up their sleeves and really work the deals they way they have traditionally…Some chief executives of venture capital backed companies are calling them 'drive-by venture capitalists.' They drive by, throw out the money, and attend the board meetings by telephone. That is not very good.
The path to profitability, or P2P, is the major new buzz term. Others include: insults such as "drive-by VC", "serial entrepreneurs"; and warnings such as "down round" and "T round". Drive by venture capitalists are those so busy investing that they have no time to help start-ups.
"In a time of 'drive-by VC' we are differentiated by our active, involved investment approach and the strength of operating skills we bring to the table,' said Jon Feiber, a general partner of MDV and co-managing partner of the funds.