We recently passed on an investment opportunity.  What would probably be a surprise for the founders is that we were actually quite keen to invest a few weeks earlier.  But the opportunity lost momentum for us.

A VC fund constantly evaluates investment opportunities, not just on their absolute merits but also on a relative basis.  Since we have limited capital and limited bandwidth, we try to recalibrate our opportunity pipeline on a continued basis.  This may naturally lead to a shift in priorities.

Today, the VC market may feel like a seller's market.  However, my advice to founders is that when you find a term sheet in front of you, focus on keeping the momentum in the process.  You may meet lawyers who are trying to show you what sharp negotiators they are.  Coach them to keep their eyes on the finish line. 

Remember, as a startup founder, you have one objective: maximizing the probability of success for your venture.  Funding is a big factor in this equation.  So, when you have capital in your sight, don't take your eyes off of it.