Entrepreneurs Ask VCs for Cash Back

A provision in the HomeAway funding deal reveals how the weakening economy is straining the venture capital model

This week's $250 million funding for vacation home rental listing company HomeAway was the largest Web-related venture capital investment since the bubble days at the turn of the millennium. But it also contained a provision that signals how the lack of venture exits may be causing some entrepreneurs to ask for cash now rather than wait for an initial public offering or sale that may never come.

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