> If you decide to switch to another investor in that period and it's not because we've done anything wrong, then we might charge you for our costs. There's a

> If you decide to switch to another investor in that period and it's not because we've done anything wrong, then we might charge you for our costs. There's a weird effect when you actually put a price on something which is usually just enforced by a social contract. There was a story about the kids playschool which charged parents $3 if they were late to pick up the kid: it caused more parents to be late. They weighed the costs ("$3 isnt that much") whereas before they would just have had wilting looks and having to be really sorry. Breaking a term sheet is pretty shitty. If it changed from "pretty shitty" to "this will cost you $5k", that might change the calculus a bit, especially since I can objectively value the latter and compare it to another deal on the table. (FYI: the terms say the investor is paid costs, but the entrepreneur doesnt get the same deal if the investor pulls out. Also, for someone with a large fund investing lots of money, demanding your costs be paid by the relatively much poorer startup is a tiny bit shitty and feels punitive.)