Founders should inform investors about smaller investments as they raise them

Negation: Founders should not inform investors about smaller investments as they raise them 0 0 0

1 Argument

0 Citations

1 Consequence

2 Mentions

Arguments

Argument #5f02de32 1 0 2

If it is true that...

Founders have a moral obligation to respond promptly to clean offers from investors 1 0 2

Then it must be true that...

Founders should inform investors about smaller investments as they raise them 1 0 2

Opposing Arguments

No opposing arguments found

Citations

No citations found

Consequences

Argument #b7d3551a 1 0 2

If it is true that...

Founders should inform investors about smaller investments as they raise them 1 0 2

and

Investors may pressure founders to stop raising money until they commit to them 1 0 2

Then it must be true that...

A series A termsheet with a no-shop clause can stop founders from raising money 1 0 2

Mentions

Paul Graham/How to Raise Money

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Related Propositions

Startups that raise money usually do it more than once 1 0 1 The behavior of investors is often opaque to founders 1 0 2 The amount a startup should raise depends on the startup's needs, not on the amount investors are willing to invest 1 0 2 Underestimating the amount you hope to raise sends useful signals to investors 1 0 2 If you're raising money from many investors, roll them up as they say yes 1 0 2 If you have multiple founders, pick one to handle fundraising so the other(s) can keep working on the company 1 0 2 Even if there are still one or more founders focusing on the company during fundraising, growth will slow 1 0 2 Good investors don't lead startups on; their reputations are too valuable 1 0 2 Founders have a moral obligation to respond promptly to clean offers from investors 1 0 2 Investors may pressure founders to stop raising money until they commit to them 1 0 2