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A comment on Don't Shop Your Term Sheet.

Re:Don't Shop Your Term Sheet by mustpax on Thursday September 03, 2009 @09:44AM (#802432)
I don't know anything about VCs and funding, that being said how are you supposed to get competitive bidding going if you can't shop term sheets, or verbal offers as this article suggests?

What are you supposed to say, "I have a very good feeling VC X might offer me 4, so you are going to have to offer 5." You can't haggle unless you have concrete alternatives to push the price up.

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Re:Don't Shop Your Term Sheet by hwijaya on Thursday September 03, 2009 @09:52AM (#802462)
As i am reading into this whole "raising money" topic recently, this is what i came across in Venture Hacks.

My understanding is, shop around, but, don't say it as "shop around". Use other languages or excuses.

http://venturehacks.com/articles/shop-around

This is the summary:

Summary: A deal is only as good as its best alternative. Keep improving your alternatives until you have a signed term sheet. And keep developing your current offers or they will die. Finally, don’t say "shopping around", it puts investors off their stroke.

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