Coronavirus: Startup investors accused of 'horrible behaviour' - Business Insider

Founders and venture capitalists say unscrupulous investors are taking advantage of the uncertainty to renege on deals, adding to their current stresses.

Startups in the US, Europe, and Asia face global recession thanks to the pandemic, and investors have warned that many could go bust. "Venture capitalists see this moment as an opportunity, whereas for founders it's something to survive," the person said. He wrote on Twitter: "Several examples but worst so far is calling a founder to say they're halving the valuation of a signed term sheet... 72 hours after full form legal docs were meant to be signed."Some investors say it is natural for funding behaviour to change. The past few years have seen record amounts of funding raised by venture capital funds, making capital easier to come by for startups.

I backed out of 2 term sheets already (1 in US and in Philippines) . Was only for $325k total but these are extraordinary times.

Lol, we’re past economic reason if founders of VC funded tech startups think that pulling funding because of a force majeure is “reneging.” Lemme guess, these founders are all between like 25-35 years of age!

Oh boohoo. This is the mentality that easy money created. It’s drying up and it’s time for business people to come back to reality.

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