Via Trevor Loy (not a bailer) this story
We’ve heard three stories in which lead investors bailed on rounds after term sheets were signed.
Another entrepreneur raised between $3 and $4 million and thought he was in the clear. The money was invested, but there was a draw-back clause on the term sheet. The investor retracted all of the money 30 days later.
Today, we heard from Rand Fishkin, cofounder of SEOMoz, who had $24 million taken back after term sheets were signed.
Fishkin says “everything was signed” with his investor in August
Read more: http://www.businessinsider.com/vcs-money-drying-up-2011-8?utm_source=Triggermail&utm_medium=email&utm_term=10+Things+In+Tech+You+Need+To+Know&utm_campaign=Post+Blast+%28sai%29:+10+Things+You+Need+To+Know+This+Morning#ixzz1X1sq9ZeI
People tend not to note the non-binding nature of term sheets – non-binding on one side.