Negotiating the Deal

07/28/2016 00:03:03 to watch
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Some people view any type of negotiation as a ‘zero-sum game’— anything you get is something you have to give. I much prefer and think it’s better to find win-win solutions, ones where everyone is on the same page about the considerations.

Suggested Readings

Founders School || Financing Your Venture: Angel Investment || Negotiating the Deal || Impact Guide (PDF).

Koss, Ann-Marie. “Best Practice Guidance for Angel Groups – Deal Structure and Negotiation.” Angel Capital Education Foundation. July 2007.

Berry, Tim. “5 Tips on Negotiating an Investment Deal.” Bplans. Article

Zwilling, Martin. “Don’t Let Investor Negotiations Kill Your Startup.” Forbes. Blog post. July 31, 2011.

Financing Your Venture: Venture Capital – Negotiating the Deal with Jeff Bussgang

Questions for You

What are the cares or considerations my investor might have?

What is the investor looking for in terms of returns on this deal?

What is my bottom-line number and what is it based on? Does it make sense in this instance?

What is my anticipated exit? Does this align with the investor’s thoughts?

Tools and Exercises

Researching an Angel or Angel Group: Talk to entrepreneurs the group or investor has worked with (successful and unsuccessful ones) to see how they behave in the good times and the bad. Find out what kind of end goal they usually try to attain in terms of company exit, leadership team, etc.

Own Your Venture – An equity simulator makes understanding the impact of raising money for an early stage venture transparent and easy to grasp.

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