Drive-by VC

Drive-by VC

A type of venture capitalist. In the usual model, the venture capitalist (VC) is involved in management and monitoring of the startup. A drive-by VC invests in a portfolio of startups and is often quick to exit.

Drive-by VC

A situation in which a venture capital (VC) firm invests in a start-up but takes little or no role in managing it. This is because the venture capital firm seeks to sell its investment in the shortest possible timeframe. Drive-by VC is often advantageous to both the start-up and the venture capital firm, though critics maintain it can lead to unsustainable growth, as the VC firm can pressure the start-up can go public before it is fully prepared.