Vc Showing Disinterest After A Signed Term Sheet
TheFunded.com Advice
Posted by NeedHelp on 2008-04-18
I need some counsel from someone who would have dealt with a situation of VCs walking away from a deal after signing the term sheet. Board pressured me to sign the term sheet with a VC even though it required a second investor to come in. Initially that VC showed a lot of enthusiasm to help me in finding the second investor. I guess he was hoping to get in the deal with some other VCs that I was talking to.
This week I see a completely different behavior from him. He told me that I am not bound by the exclusivity terms of the deals and feel free to go out. I feel like an idiot here since I spent so much of mine and board's time to discuss and negotiate this term sheet before signing.
What should I do in this situation? Has anyone faced a similar situation? It is a series A deal. I am afraid of losing credibility once other VCs find out that someone walked away from a signed term sheet. Am i worried unncessarily? Appreciate your thoughts.
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