Beware high-value out-of-towners

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.

https://twitter.com/pmarca/status/452158174728970241