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Re:Investor Herd Dynamics by btilly on Tuesday August 13, 2013 @03:52AM (#6204499)
My guess as to the dynamic is this. If a VC knows that SOME other VC is interested in you, they can't feel out other VCs to see who it is because it might get a third VC involved.

But if one VC knows who the other VC is, then collusion is simple and clearly in the VC's best interest.

Re:Investor Herd Dynamics by crapshoot101 on Wednesday August 14, 2013 @03:26AM (#6210287)
No, again it isn't. If you are looking to raise $1M on a $3M pre and you're talking to two firms seriously with the idea of picking one investor (who would end up with 25% in that scenario), you might negotiate some of that point, but its pretty unlikely you will end up taking 1 on 1 ( with the investors each putting in $500K, which would get them to that same 25% ownership threshold as in the original scenario).