To be even more clear, its' not about the CEO in the story its about Mark not betraying his friend (e.g. going home with the girl who brought him to the dance) and instead going with another new VC.
The CEOs weren't brought to the dance, they could pick whichever VC they wanted to. It's just that he would have left the deal if they hadn't picked his VC.
---
He also throws in a story at the end about another company who signed a term sheet, then reneged on it and considers that as a black mark on their reputation. Maybe it is, maybe it isn't but its a separate story.
The CEOs weren't brought to the dance, they could pick whichever VC they wanted to. It's just that he would have left the deal if they hadn't picked his VC.
---
He also throws in a story at the end about another company who signed a term sheet, then reneged on it and considers that as a black mark on their reputation. Maybe it is, maybe it isn't but its a separate story.