[moogabi]

My guess is that in negotiations the risk of telling them who they are competing against outweighs the benefit of keeping them guessing. I suppose they could think you are bluffing and not really talking to any other VCs at all, but if they believe you actually are meeting with other VCs, I could see the benefit of keeping them in the dark.

[beat]

VCs are a small world. And VCs need each other more than they need you (as an individual startup). Most entrepreneurs will climb that VC hill once or twice, ever. But VCs will partner together on deals for years, decades. So if your negotiations really have you pitting one VC against another, it's likely that you will lose, not them. After all, there are always other startups.