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Unaterra, an early-stage VC firm, has been issuing term sheets without having raised capital or reached a first close.
This has misled several startups, causing them to halt their fundraising efforts based on false expectations. In one case, a company was pushed into liquidation—resulting in a total loss for all investors.
This kind of behavior is not just irresponsible—it’s unethical. Founders and investors deserve transparency and accountability.