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A comment on How to Raise Investment. Parent comment

Re:How to Raise Investment by robocat on Monday September 13, 2021 @11:22PM (#28519838)
You said “It is considered bad form to share the contents of a termsheet with other investors” and “You do not want to be seen ‘shopping around’ your unsigned termsheet”.

The benefits to a founder of shopping around seem clear, so could you quantify the downside risks? Do the risks matter for a “hot deal”?

PS: Thank you so much for your awesome article: it is especially gratifying to see something that isn’t from the valley (I am in NZ).

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Re:How to Raise Investment by tomblomfield on Tuesday September 14, 2021 @04:33AM (#28521885)
The downside in the extreme is that the original investor pulls the termsheet and you end up empty handed. I know of cases of this happening, but it's rare.

More commonly, you develop a bad reputation in the VC community, which is very close-knit. Next time you come to raise money, this can hurt.

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