Capitalization table
| Class |
Shares |
Preferred Price |
Valuation |
Percentage |
| Founders |
2,000,000 |
|
|
A |
| Employee pool |
B |
|
|
20% |
| VC |
C |
D |
5,000,000 |
33.33% |
| Total |
E |
D |
15,000,000 |
100% |
Negotiation
Always investigate portfolio before a Deals
What Really Matters?
- Achieving a good and fair result
- Not killing your personal relationship for #1
- Understanding the deal
Preparing for the Negotiation
- Do not let the lawyer running the show.
- Young entrepreneur should focus one advantage: time pressure.
- A solid Plan B - lots of interest and competition.
Negotiating in the Game of Financings
Ask VCs up front, before the term sheet shows up, what the three most important terms are in a financing for them.
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