What happens if you don't actually spend VC money? Do they still get partial ownership?
This is the first time I hear of a situation like this, and I'm really curious.
This is the first time I hear of a situation like this, and I'm really curious.
Yes. Just like you still pay interest on a loan even if you just let the cash all sit in a bank account.
A loan is fundamentally different from a share purchase though, you can try to buy back you shares but that would be a separate negotiation.