[davismwfl]

I agree with this overall, one caveat I would add.

If the investor is introducing you to a portfolio company and disclosing data that you would not otherwise be able to obtain solely so you may enter into a developing market and/or sell to his/her other portfolio companies creating said market, it is potentially not as cut and dry. It is the place I would think only an attorney would be able to really answer with some authority.

Either way, I still stick to if you already feel the investor isn't a net positive then you should walk away. Just remember, you can be 100% in the right, still get sued and have to prove your way out of it. Do you have the cash to deal with that? Is the investors market that lucrative it would be worth a potential risk there? My guess is no.