Ask HN: Would you meet with a VC that had a competitor in their portfolio?

This is very common. Always take the call. But be careful.

They are quite possibly scoping you out on behalf of a portfolio company and might want to make a large offer to do a merger. So, you could get rich, or they could clone all of the ideas that you let them have. Make sure that the only ideas they can clone are on your website already.

Here are a few simple rules to follow to keep yourself from slipping up:

* Do not talk about future stuff that isn't on your website, unless you're talking about things that will launch in the next week or two.

* Don't brag, especially about things that you are planning to do and aren't already in the market.

* Don't share numbers or profits that isn't on your website, although you might want to be (very slightly) flexible on this one.

* Always talk about WHAT your product(s) do, but never HOW they do it. VC's probably won't care or won't understand the how anyway.

* Try not to be overly enamored or subservient in your tone (don't be a jerk, either.)

* Always keep in mind exactly what you hope to achieve.

* Don't talk too much.

* If you get a good offer, get a strong lawyer from another town in your state (not the same city) that can advise you, and do not get into a situation where you are paying the lawyer but then change your mind. Often lawyers kill deals, so either keep the lawyer around just to paper the deal, or you can bring them in when during the whole discussion -- but only if you think you really need them. But remember this rule of thumb: if they have counsel on the call, you should too.

Remember that even if everything goes perfectly and they invest or make an offer for your whole company for one of their portfolio companies, you will have to maintain a good relationship with them for a very long time, and possibly one of your direct competitors -- and that's probably the best-case scenario. The worst case is a lot worse.

And, congratulations on attracting this attention from a power player. That means you're onto something. Sometimes, the best answer is to hear what they have to say, and then not move forward with any potential offer (have a strong BATNA).

It's hard to tell from your description how big the firm is. If on the meatier end then it's not unusual they'll have something in your wheelhouse. If boutique - then that's obviously a lot more concerning.

If it's the former and they're backing something with a super similar value prop then I would just be polite and upfront about the conflict of interest. They are no doubt smart people and, therefore, it's likely they will have anicipated your hesitancy already and will be primed with some form of response.

Maybe they're trying to fuck you here - but I would just play through and be transparent.

VC are not your friends and you should assume they are meeting with your competition at the same time they talk to you.