People should call this out more. What are examples around you where VCs have done something bad to a startup?
Know a cousin who is a founder. Tells me with experience that VCs in India only operate in FOMO. Unless you tell them another VC is looking to invest in you, they will NEVER invest in you. They need fomo to operate Only exception is ex CXO founders (high profile), where they know they'll get funded so it's fastest fingers first!!
the other side of the game is more like founders getting really greedy. Going for term sheet shopping esp when you’ve no shop clause.
sastashahrukh
Stealth
3 months ago
Wait, VCs add a no shop clause? This is a decade long partnership, and founders are expected to take the first term sheet they get?
Ebitdax
Stealth
3 months ago
You don’t need to accept the first term sheet you get, but basic good faith behaviour, demands that you don’t take term sheet from one VC and ask the other VC to top it..
As a VC, I feel Indian VCs have a lot to learn on this front. Most made money due to luck and timing. Our understanding of how to evaluate early stage deals is still shallow and hence we look at each other for answers aka FOMO epidemic.
Very few VCs have the balls needed in this kind of investing. Even fewer have the wisdom.
Here’s to really hoping we grow from our mistakes nd not punish unsuspecting founders for our flaws.
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