4 ms·
This was the one YC W11 company that didn't present at Demo Day because of a no-shop clause.
by sahillavingia 16y ago
This was the one YC W11 company that didn't present at Demo Day because of a no-shop clause.
- d0m 16y agoCan you explain more?
- sahillavingia 16y agoWhat do you want me to explain?
- bostonvaulter2 16y agoWhat is a no-shop clause? I didn't even realize that the Humble Bundle was a YC company.
- sahillavingia 16y agoNo-shop means you accept a term sheet that includes a clause that stops you from talking to other potential investors.
- swalkergibson 16y agoI realize this is straying off topic, but why would an entrepreneur hamstring him/herself by agreeing to such a clause? It appears to me that such a clause benefits the VC in a big way, but puts a significant amount of undue pressure on the entrepreneur. How am I supposed to know if I am getting the best deal if I am barred from taking the offer into the marketplace?
- andrewparker 16y agoYes, it is a pro-investor clause. You would agree to it in the situation where you feel you are satisfied with the term sheet (and who its from) and are ready to commit.