To set the right context, this is specifically in India. I know someone currently raising about 100k USD seed round. It's a D2C product that's doing well and just needs cash to expand. I thought he wound't have any issues raising but he keeps running into what I feel are predatory VCs.
A lot of them seem to want advisory shares *on top* of their investment. This makes no sense to me. Aren't the shares provided for the money given enough? To me it seems like they want to get a "discount" by being given more shares. They seem to love using this as a negotiating tactic.
There are also some "syndicate" leads that seem to want advisory shares for just helping raise. Is this normal?
I only have experience in the bay area, and I've never heard of any thing like this. i.e. trying to double dip into advisory shares, and asking for shares just to connect to people. Has the market changed? Is this the new norm?
A lot of them seem to want advisory shares *on top* of their investment. This makes no sense to me. Aren't the shares provided for the money given enough? To me it seems like they want to get a "discount" by being given more shares. They seem to love using this as a negotiating tactic.
There are also some "syndicate" leads that seem to want advisory shares for just helping raise. Is this normal?
I only have experience in the bay area, and I've never heard of any thing like this. i.e. trying to double dip into advisory shares, and asking for shares just to connect to people. Has the market changed? Is this the new norm?