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> you can immediately call the other potential investors, and tell them that you have a term sheet from someone (don’t say who), and put pressure on them to giv
by confiscate 9y ago
> you can immediately call the other potential investors, and tell them that you have a term sheet from someone (don’t say who), and put pressure on them to give you a term sheet
sorry I don't quite understand this part. What would be the benefit of not saying who? (i.e. the first term sheet investor). Wouldn't saying it be more convincing and put more pressure on other investors?
- JumpCrisscross 9y agoThe first investor won’t appreciate being shopped.
- gatsby 9y agoIf you have a term sheet from a great/good investor, you don't say who it is because all good investors talk and the investor you're trying to get a term sheet from will just call the investor who gave you a term sheet. Worse case, they talk each other out of the deal. Best case, investor B comes in ever-so-slightly above investor A's offer (vs. potentially coming in way above, in absence of knowing the price). If you have a term sheet from a bad or unknown investor, you don't say who it is because all investors (great, good, bad, or ugly) will discount their offer significantly. There is a huge difference (even if it's bullshit) in getting a $10m A from Sequoia vs. a $10m A from a Dutch strategic investor who's making their second investment in three years.