Understanding the Risks of VC Signaling
Both Sides of the Table
APRIL 3, 2010
Second, more damning is the “signaling problem. This means that if a VC invests in your seed round and does not participate in a future round the next round investor will think to himself, “well, if Big VC Co. We used the Y Combinator open source term sheet. That founder wasn’t one of your angels.
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