The real damage is that ROFR's often allow partial matches rather than require taking 100% or 0%. Where this goes really badly is an Investor wants to do $2M a

The real damage is that ROFR's often allow partial matches rather than require taking 100% or 0%. Where this goes really badly is an Investor wants to do $2M at 10M and the other investors wants to ROFR half the deal. $1M might be below the minimum investment threshold for VC2 and the $1M from VC1 might be too small for the whole $2M targeted round by the company. So now the whole deal falls apart because you can't fill out the whole round since VC2 won't invest 50% of the round and VC1 can prevent VC2 from taking a large enough block by ROFR some of the shares in the deal.