Question by vogell: Venture Capital Funding and Salaries?
If I were to obtain venture funding for a startup, would I be able to draw a salary from the capital raised? How does that work? It would seem that would be a negotiable part of doing business, and obviously it would have to be some rational level, but I am curious to know how it works in the real world.
Best answer:
Answer by Frank CastleNo. You won’t get a salary.
In fact, you have to invest your own money too and sell your car or house or apply for a loan.
If you don’t risk your own money in the business nobody else will.
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Question by carbonado: What’s the legal relationship between a venture capital (VC) company and the company it gives money to?
When the VC company A gives $ 10 million to startup company X, and Company X has raised a total of $ 20 million, does VC company A own 50% of Company X? I’d really appreciate if you could cite a good source for your answer because it’s part of a paper I’m doing on conflicts of interest. Thanks a ton in advance 
Best answer:
Answer by John KWhere did the other $ 10 M come from? The VC owns the percenage of the company that $ 10 M buys.
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Question by sham8450: How can I obtain venture capital without applying for a bank loan?
I am starting up an online business and I need startup money. I dont have good credit so bank loans are out. I dont know how to apply for a grant. I dont have any rich friends or relatives. Is there a way?
Best answer:
Answer by JeffDevelop and document a business plan. If it has good ideas, you can shop that around to venture capital organizations, who will want a piece (probably control.)
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