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50 Questions: To what extent should I encourage competition between VCs?

By on April 11, 2012

Together with Nic Brisbourne of The Equity Kicker / DFJ Esprit, I am writing a series of 50 questions you should ask when raising venture capital. We expect the series to run for a year, after which we will collate the answers into a book. We view this as a collaboration, so please comment to help make this series even more useful. This is #49 in the series.

Nic Brisbourne has recently given his own take on the question of investor competition, which I looked at in an earlier 50 questions post on competitive tension. We both agree on the main points; narrow your options down to a few serious investors, and try to get them moving along the process at the same pace, so that you have two or three termsheets to compare. However, the social graces of negotiation are tricky at best, so to learn to skillfully manage multiple potential investors, you should read Nic Brisbourne’s post on encouraging competition between VCs as well as my own post on competitive tension.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: