Thanks in turn for your kind words. Your strategy makes perfect sense for startups that look to take in angel money only or that look to do so at first in hope

Thanks in turn for your kind words. Your strategy makes perfect sense for startups that look to take in angel money only or that look to do so at first in hopes of building significant value before approaching VCs down the road, they hope, from a position of strength. This is the going strategy today in the Valley and many of our startups use it. The issue in dealing with the VCs is primarily a psychological one and I would say that, other than in an extremely down investment environment, most would be willing to let go on something like 2x if the market as a whole for VC investments is not supporting it (the long-term norm is 1x - during the dot-bomb phase, it was more like 3x-5x - today it is somewhere in between). So, yes, I think the issue can normally be argued, and argued successfully, especially if the startup is positioned well and can be selective. The terms for participation with a cap will vary widely but, in essence, do not come out much differently in practical terms than would a 2x/non-participating type of preference.