One of the most high-profile deals in the financial services space may be heading back to the drawing board. While the transaction, which was widely seen as a result of years of friendship between the principals of the two parties, should have progressed to the next stage of approval, it is now back on the discussion table. Everything is reportedly up for negotiation again, starting from the cheque size to the conditions attached. It doesn’t look like the deal is entirely off the table, though.

For now, it seems the friendship has hit a few snags -- not a full-blown falling out.

A private equity firm has been flexing its muscles. It has quietly told several VC funds not to fund an up-and-coming fintech startup.

But why, you ask? It could be just a bruised ego. The founders of the fintech in question are former top executives in a company that this PE company backs. While a new startup is generally considered good for the ecosystem, it may also lead to heightened competition in the space.

This issue is not new, though. Founders of well-funded companies often collaborate to ensure VCs do not invest in companies set up by their former employees. Call it savvy strategy or self-interest, these tactics work more often than you’d think.