It wasn’t an easy decision for the team. It was sincere in my offer. They elected to sign my term sheet. Chris might say that they could have gotten a higher price had they shopped it. He might be right – we’ll never know. But the highest price possible is not always the best outcome for the company. I gave them a “high” price by Chris’s definition in his post on not taking seed money from VC, but I didn’t give them a “Foursquare Price.” But importantly, there was no signaling effect. By offering to take half the round or my prorata I fully enabled the company to do whatever they needed to do.
via www.sfgate.com