Venture capital etiquette – is it frowned upon to pursue capital at various firms?
Posted by admin on 5 Nov 2008 3:29 am. Filed under Small Business.
CityGirl82
I have a contact within one firm, and I don’t want to ruin my chances with them by speaking with other firms as well. Does anyone know what the norm is? Do most entrepreneurs discuss options with multiple firms during the same round?
I have a contact within one firm, and I don’t want to ruin my chances with them by speaking with other firms as well. Does anyone know what the norm is? Do most entrepreneurs discuss options with multiple firms during the same round?
One Comment to “Venture capital etiquette – is it frowned upon to pursue capital at various firms?”
Leave a Reply
You must be logged in to post a comment.
On November 7th, 2008 at 3:17 am
It is common to speak with more than one source of funding unless it is in a contract that you can not. I would speak to people that do not know them or where you think the odds of them knowing each other are low.
Further, I would be up front with the VC firm and tell them you need a decision time-line etc. If you have a deadline, with certain funding it is customary to not speak to other VC’s but when timeliness exceed 30 to 90 days it is expected that you are going to protect your business by keeping your options open.
It really comes down to level of commitment they gave to you.