Archives For Negotiating

Let’s Make a Deal – 5 tips for Startups when Negotiating Contracts with Big Customers

Matt Bartus —  September 14, 2010 — Leave a comment


So your startup has finally landed a deal with a huge customer that could potentially put your company on the map. Now how do you negotiate this deal so that your company (not just theirs) gets the most out of this relationship (and avoids a situation like this one: In a Partnership of Unequals, a Startup Suffers?

1.  Term Sheet, Term Sheet, Term Sheet

Did I mention the term sheet? In large companies, the business guys you’re talking to (who are very excited about you and what you’re doing) are far removed from the legal folks who create and negotiate the final contract (which you will have to live by). In order to make sure your contract matches your business goals, be sure that any and all important deal terms and conditions are in your term sheet … otherwise they’re not going to end up into your contract. Continue Reading…

In Negotiating
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Don’t blow up your Series A term sheet by over-optimizing terms

Matt Bartus —  March 31, 2010 — 25 Comments

Let’s say you’re a first-time entrepreneur and you’ve hit on an idea that is getting some traction and attracting the attention of VCs.  You do some research online to familiarize yourself with customary terms and finally get a term sheet from a reputable VC at a valuation you think is fair.  Next comes the fun part – negotiating the term sheet.  Negotiating term sheets should be straightforward, but sometimes when you combine first-time entrepreneurs with inexperienced counsel, the results can be toxic. Continue Reading…

In Investors, Negotiating, Term Sheets , ,
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How to pump up your VC valuation

Matt Bartus —  February 9, 2010 — 23 Comments

If you are a company that is fundraising, keep in mind that there are a few different levers  you can pull to change the amount of dilution that the founders will experience.  VCs know about these levers, and they pull them all the time.  Let’s look at an example of a lever that you can pull. Continue Reading…

In Equity, Investors, Negotiating, Term Sheets , , ,
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