Basically the partner who was backing the deal has made it clear this was not something that came up in due diligence, but rather he was changing location. (i.e. physically moving across the world). When I asked if we could just push back the dates- he suggested he would rather wait until the next round. This is after a 40 day 'limbo period' where we thought the deal was on. Should I continue to pursue a deal with them?
The issue is, now I look somewhat foolish going back to other co-investors and explaining that we need to switch lead investor. Any advice welcomed, thank you.
Just be transparent and if you can, get a formal letter from that former partner about the situation. Things like that happen!