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How does a letter of credit from a Venture Capitalist works?

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Tue, 07/27/2010 - 09:57
hryder
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Joined: 07/27/2010
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I am invested in a company which has recieved a letter of credit of 100 million dollars from an indian Venture Capitalist on profit sharing basis for future projects (signed contracts).

 

What kind of stipulation of term are usually tied to this kind of investment and what does it take to cash this LC?

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Wed, 08/04/2010 - 02:19
#1
laxman12 (not verified)
International finace.

Letters of credit in the venture capital arena work the same way they do
with commercial banks.  This particular transaction appears in my opion
to be fraudulent. 

regards,

phe9oxis,

http://www.guidebuddha.com

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Wed, 07/28/2010 - 00:50
#2
DC_ken
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Joined: 07/21/2010
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This kind of investment is

This kind of investment is usually tied with scam and fraud.

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Fri, 07/30/2010 - 11:56
#3
LC Sam
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Joined: 08/09/2007
Posts:
Letters of credit and Venture Capital

Letters of credit in the venture capital arena work the same way they do with commercial banks.  This particular transaction appears in my opion to be fraudulent. 

 

Best regards, 

LC Sam

p.s.  I work with a bank that focuses on the venture capital area, and we would not issue such a document.

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