Got a s**t term sheet but you're running out of runway? Should you negotiate that fkd up deal? Background: I've raised $7M in angel and VC by pitching to over 150 investors. I've faced this exact situation. Answer: Yes. You MUST negotiate. But... you think... I'll lose the investor. You are equally likely to lose the investor if you don't negotiate good terms. He/she needs to see that you can protect the company's interests in future rounds. So negotiate... ...for things that really matter. - Liquidation preference - Warrants - Control & board structure - Veto rights - Anti-dilution provisions If you don't know these terms 👆 Hang tight... I’ll be sending a deep dive out this Sunday. To get that deep dive, use the link below to get my fundraising guide. TL;DR Always negotiate deal terms, you never know what you can get. I went through 167 investors pitches and raised $7M. I turned that experience into a scalable fundraising system. You can get my fundraising system ☝ for free and skip all the rejections, just click here: https://lnkd.in/e_Fm5zRs 500+ smart founders are using my fundraising guide to cut their fundraising time from years to months. +Follow me here for practical advice and frameworks to accelerate your startup from idea to $2M ARR. If you learned something useful from this post, be sure to give it a like and repost it to share it with your fellow founders!
Board structure is an iceberg. If you as a founder you are outnumbered at some point that is going to matter.
Good reminder. It's definitely not easy to negotiate when you're in a desperate position...
Completely agree! These are the key points that you have to get right to build a company from a solid foundation.
Negotiation is key in securing good terms! Saurav Agarwal
I help driven Founders become world-class CEOs — so their startup ‘gets better, as it gets bigger’ & they don't burnout // Share lessons from 321 Education (0→~100 team, 300,000 learners, 10yrs) & current Solopreneurship
10moA way that helps me think in these situations Saurav: "Knowing what I know would I accept this deal from a new investor?" if the answer is clearly no, then I would negotiate