Who are the other investors you are speaking with?

You would have probably encountered this question when pitching to VC investors. It typically arises right in the first meeting.

 Before I tell you how to answer this, I must tell you what VCs are looking for when they ask this question.

Their primary goal is to understand how the investment round is shaping up. This includes who else is willing to join the round, what commitments have been made and how far those conversations have progressed, do you have a lead investor, whether are you expecting a lead term sheet any time soon etc.

 So, Should you tell the investors who else you are speaking with?

The simple answer is NO! (unless you have a term sheet in place)

 If you reveal the names of other investors before securing the term sheet, the following things are likely to happen: