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69 propositions

65 inferences

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Claim

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




Arguments

If it is true that...

Founders should inform investors about smaller investments as they raise them

and

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

Then it must be true that...

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


Consequences

If it is true that...

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

and

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

Then it must be true that...

Founders should be cautious even when potential series A investors have great reputations and work fast to provide termsheets