During the process, do not disclose to investors who else you are talking to. Why not? Because doing so reduces the control you have. If other investors find out who else you are talking to, they may collude if both want to invest, OR they may give / receive negative feedback if they decide not to invest. PLEASE REMEMBER THIS : It may be very hard to not give what a VC's asking for when they ask who else you are talking to -- but PLEASE DON'T tell them -- they don't need to know and it's not relevant. The only core relevant issue is are they interested (with whatever caveats, etc.).
Instead, if asked who else you are talking to, you can try one of these responses:
"Out of respect for our other investor prospects, we are not divulging the names of the other investors we are speaking with. We do not want them to feel like we are using their name to curry in other investors into the round. We also want each investor to make an independent assessment of whether they are interested in us -- not because of who else is investing. We will of course disclose who the other investors are before any final commitments, but we'd ask that you make your own independent assessment."
The goal is to get everyone to put forth term sheets independently -- and at the same time. Typically, when a fund issues a term sheet, they will give you a very short fuse to make a decision (often less than a week). You want everyone to come in at the same time so you can objectively assess your options and decide what is the best outcome for you. This is also why it makes sense to go all-in when fundraising. Even if you get an opportunistic who's interested in investing -- unless it's a no-brainer deal (e.g. an uncapped note), you may not have a good sense of what is fair / market, unless you have other offers to compare it to.