I have two investors that appear interested in my concept. I am going to speak to one tomorrow. I intend to disclose to him that I will also be speaking with another investor very soon. If possible I would like to procure funding from both sources. Will this put him off or will this attract him more? Is it easy (enough) to work out terms so that I can get funding from both sources? Also, is procuring funding from multiple sources a good idea or can it lead to problems later?
Yup, its actually a very wise strategy for multiple reasons:
Tell your investor that you are excited to have his support, ask them what they think would be a reasonable amount they could contribute after letting them know how much you need to raise. Let them know you are looking at different sources as a strategy to lessen risk for all investors. A smart investor will not get his feelings hurt, if they do, then you are dealing with someone that wants some sort of advantage over you. When i have my investor hat on, I only get greedy when I find a weak business where I can overtake. In situations where there is a business that I believe in, I usually share the opportunity with other friends in the same financial situation and we go in as a team. A few of my good friends have been those that invested on products, and that I have met through our mutual investments.
Best of luck.
BTW if raising capital fails, keep building and moving forward. Capital is only the fuel you need to run your engine. There are lots opportunities to fuel up, key thing is to have that engine assembled.