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Yuri Milner’s DST Encourages Side Investing Unlike Many VC Firms

The agency doesn’t usually put money into younger corporations, so it permits the companions to take action individually or pool their money

Photo Credit : locatory.com,

At DST Global, the funding group run by the Russian-Israeli billionaire Yuri Milner, private investing is institutionalized. Many venture capital firms frown upon and even bar their companions from utilizing their very own cash to make side investments in startups. 

A prevailing philosophy in enterprise capital is that permitting companions to dealer private investments can put their pursuits at odds with these of the agency. An investor would possibly select to bid up the valuation of a startup he holds utilizing his employer’s cash, in flip growing his paper wealth.

DST sees issues in another way. The agency doesn’t usually put money into younger corporations, so it permits the companions to take action individually or pool their money. It asks that every deal is authorized by the compliance division beforehand, a spokesman for the agency stated. DST does this, based on interviews with a number of founders who took companions’ cash, as a result of it permits them to scout entrepreneurs the agency would possibly need to put money into later. And it usually does.


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