Do you know how your friend feels about the two current interested VC's? Does friend not agree to their terms, are the VC's open to negotiations, does friend want to go after larger funding? If you can gauge friend's response to these questions, then you should be able to answer Q(1) and be comfortable doing Q(2) without burning bridges.
Friend should also give VC's more credit than to play them against each other or use them as bait. VC's are in their business because they know their stuff and can smell a good/bad idea a mile a way... when they don't understand an idea, it's because we as entrepreneurs have failed to help them understand.
Friend should also give VC's more credit than to play them against each other or use them as bait. VC's are in their business because they know their stuff and can smell a good/bad idea a mile a way... when they don't understand an idea, it's because we as entrepreneurs have failed to help them understand.