[MKBSP]

I’ll go first:

A friend of mine raised $2.1M from a US fund in the construction space. I had also tried to raise from this fund but wasn’t successful. Later, another contact in the same industry shared his experience with this fund. They spent two months "reviewing" his data room, holding meetings, asking questions, and seeing demos. In the end, they passed and funded his competitor instead. While frustrating, that's part of the game.

Now, back to my friend. The fund led his round, and he’s currently raising his next round. They initially committed to an additional $2M. He successfully secured $4-5M from other investors and returned to the fund, asking for the term sheet to finalize the round. However, the fund suddenly claimed they had lost confidence in him and his startup—even though he had grown revenue 5x in 9 months to over $150K MRR. They asked him to reach out to the new investors to help buy them out.

This is a $250M fund (Fund III), so they’re certainly not running out of money. Needless to say, he felt completely blindsided and betrayed.