Founders should be cautious even when potential series A investors have great reputations and work fast to provide termsheets
1 Argument
0 Citations
1 Consequence
2 Mentions
Arguments
Argument #e869d190 1 0 2
If it is true that...
Investors may pressure founders to stop raising money until they commit to them 1 0 2and
A series A termsheet with a no-shop clause can stop founders from raising money 1 0 2Then it must be true that...
Founders should be cautious even when potential series A investors have great reputations and work fast to provide termsheets 1 0 2Opposing Arguments
No opposing arguments found
Citations
No citations found
Consequences
Argument #0a64cd6c 1 0 2
If it is true that...
Founders should be cautious even when potential series A investors have great reputations and work fast to provide termsheets 1 0 2and
Having one founder take fundraising meetings avoids real-time negotiations 1 0 2Then it must be true that...
Investors are professional negotiators and can negotiate on the spot very easily 1 0 2Mentions
Paul Graham/How to Raise Money
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Related Propositions
The behavior of investors is often opaque to founders 1 0 2Investors can't wait around if a startup is growing fast 1 0 2If you have multiple founders, pick one to handle fundraising so the other(s) can keep working on the company 1 0 2Introducing an investor to your cofounders should only occur when things reach a certain stage of seriousness 1 0 2Good investors don't lead startups on; their reputations are too valuable 1 0 2Some founders deliberately schedule a handful of lame investors first, to get the bugs out of their pitch 1 0 2Founders have a moral obligation to respond promptly to clean offers from investors 1 0 2Investors may pressure founders to stop raising money until they commit to them 1 0 2A series A termsheet with a no-shop clause can stop founders from raising money 1 0 2VCs and C-level execs often lack understanding of how founders should run companies 0 0 2