Dealing with founders resistant to investor-friendly terms. How will you navigate this negotiation?

Clearly define essential terms that are non-negotiable, like equity stakes, while being open to adjusting less critical points, such as board seat allocations. Engage in active listening to understand founders' concerns, which can reveal opportunities for compromise without sacrificing key objectives. Creative Solutions: Propose innovative alternatives that meet both parties' needs, e.g, offering performance-based milestones instead of rigid terms. Build Rapport: Establish a trusting relationship by showing empathy and respect for the founders' vision, which can facilitate smoother negotiations. Be prepared to disengage if fundamental terms cannot be agreed upon, protecting your interests while signaling seriousness in negotiations.

One thing I have found helpful is to carefully listen to founders and their perspectives. Once we get the context from the founders about their understanding, it is very important to explain the rationale or the why behind a certain request for terms and conditions. I have noticed that a lot of time is lost in negotiating than in trying to understand the situation and remediating any gaps as quickly as possible. In the venture capital industry as is common in any asset class, time is of the essence. A delayed investment due to protracted negotiations is often a missed opportunity for both the founder and the investor!

As a financial consultant,I would let the founders know of my previous research on the market rates. Then show them how the investments are tailored for their solutions, aligned with their vision I would also highlight long-term benefits, and create a win-win scenario for growth to the founders.

Imagine standing before Moses at the Red Sea, where conviction and trust in the Divine plan part the waters. In negotiation, balance firmness like Moses, knowing that God provides wisdom to hold your ground, but let the founders see your flexibility as an opportunity for their own growth. Stand firm on the non-negotiables, but show Divine grace by offering compromises that open the path to mutual success. #divineintervention #gabenfreude #MentalHealthAwarenessMonth