Marc Andreessen

Beware high-value out-of-towners

5 Apr, 2014

Andreessen says he is warning portfolio companies to be skeptical of early-stage investments with high valuations as investors from outside Silicon Valley, who he doesn’t name, are acting unethically. He says they are often presenting term sheets as a start to negotiations rather than an end-point, and pushing valuations sky-high to get exclusivity on deals, increasing the risk for the startup if the investor walks, and making it harder for the investor to get future deals.

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