The VC and angel world are tiny and it all revolves around reputation and trust. The negative perception is going to cost Spark a lot more than the breakup fee. I'm shocked that they DIDN'T get it.
exactly.
Though, $200,000 on a $2 million raise is a bit high for break up fee I think.
I'd imagine they won't be getting any deals with those angels though. Part of the point of the fee, maybe.