| Things you can spend Venture Capital on?

Things you can spend Venture Capital on?

Andy asked:


I have always wondered - if you own your own company and a VC invests an amount of money in it, what is this funding generally *allowed* to be spent on?.

I can think of the obvious - running costs, R & D, salaries - but what else?. If you own/started up the company, is it generally permissible for *you* yourself to be paid a salary out of this funding too for the work you are carrying out?.

Any hints or tips about the correct or best usage of VC investment would be much appreciated.

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Comments

One Response to “Things you can spend Venture Capital on?”

  1. SuperCactus on May 22nd, 2009 1:42 pm

    Venture Capitalist seldom invest in a company without assuming control. They would guide you in any spending. They are not in the business of giving away money without control.