> "... was there a handshake deal?" Well put but it raises a (possibly naive) question. At what point can one assume that a 'handshake deal' has taken place,

> "... was there a handshake deal?" Well put but it raises a (possibly naive) question. At what point can one assume that a 'handshake deal' has taken place, and is that point really the same for both parties? e.g Is it literally a handshake and the words "We're going ahead with this!" Or could it be more vague where one party thinks there's a deal but the other's not so sure. You've said that deals exist to fall through and that "The key to closing deals is never to stop pursuing alternatives ... don't believe it till you get the check." [1] From my point of view, I'd want to spend as little time as possible in 'handshake-limbo' and get something signed. The deal might still fall through but the intent to close is more explicit. Aside: Mark says "... so I thought they should take the deal", which implied to me that not taking the deal was still a valid option. i.e. no handshake. [1] http://paulgraham.com/startupfunding.html http://paulgraham.com/startupfunding.html)