From VC’s perspective, one of the most annoying things an entrepreneur can do is “shop” a term sheet. That means after they’ve offered you a term sheet in writing you take it to other investors to try to get a better deal. Why are investors so sensitive to this? First of all, no investor wants to think they are “just money” – the idea that you want to get an explicit auction going suggests that. More importantly, what often happens is that once a VC has offered you a term sheet – especially if that VC is well respected – other VCs suddenly become interested.