I agree with Mindy. I have just watched a company in my city make a complete mess of this by thinking that going out holding an auction was the best way to get a good price. It has been a disaster because all the local VCs talk to each other and their interest drops when they realise that the company is being hawked around town.
It may be different in other cities but my advice is to approach appropriate VCs and when you get interest from one, work with them to get the best price. I sometimes even say to the VC "look, you are the VC I want so I am not holding an auction but I really want you to pay a decent price and I will work with you to get that price" Usually then a VC will tell you their issues and how you might improve their price.