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Zombie VC Firms Can Be an Entrepreneur's Nightmare

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This story appears in the September 2013 issue of Entrepreneur. Subscribe »

If you don't see any activity for, say, the last five years, be wary. You could be looking at a firm that's dying a predetermined slow death.

Picture this: The group that invested $2 million in your startup notifies you that it's shutting down. You may think you're off the hook in terms of providing a return on their investment, but in fact, the opposite is true. After all is said and done, the defunct firm's investors still expect to

see a return on their investment.

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