Be realistic about what it’s worth today to someone else, don’t live entirely in the dream of what it may be worth tomorrow. Fair partnering is a two way street based on both ambition AND realism

Understand the different perspectives on risk and reward from the founder, the investor, the staff and the market. Most experienced startup investors are focused on the 'risk of success' as they already know the risk of losing their investment. Many founders are focused on the risk of failure rather than the rewards of success. High risk-high reward is the quintessential reality of early-stage start-up investing. Curtail one and you likely curtail the other. It's about taking the right risks to lead to the expected rewards. Value (and risk) are in the eyes of the beholder so don't assume you know the other person's risk perspective - ask!!! If you don't want to offer the expected reward, don't ask someone else to take the risk.

Venture capital negotiations? It’s like poker with really expensive chips. Start by showing the shiny potential, not the messy details – a good growth story goes a long way. Be that ‘sensible gambler’ who makes the valuation seem like a total steal and, above all, act like funding is just a nice-to-have, not a make-or-break. Remember, confidence sells... and so does a little mystery!

It is typical to hear among VCs (particularly in exuberant times and by early stage investors): "Valuation doesn´t matter for the right deals". There is some truth to this because of the power law, if you invested in Uber at $10M or $50M, you did a killing anyway. However, since you do not know which deals will end up being uni/decacorns a more reasonable approach is to think of the risk return profile of the deal. For example, Series As in 2021 were horrible. They were expensive $50-80M premoneys with very little derisking (sometimes as little as $250k ARR) vis a vis the seed but significantly more expensive. Today, this has flipped Series As and Series Bs valuations dropped and requirements went up ($1-1.5m and $3.5-5M ARR respectively).

Consider staging investments. Linking follow-on capital to specific milestones reduces risk for the fund and provides early-stage startups with a clear roadmap. Collaborate with entrepreneurs to design a plan that aligns with both the startup's needs and market realities.