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Startups should learn from "10 Rules for Dealing with the Sharks on Wall Street"
Surely these "10 Rules for Dealing with the Sharks on Wall Street" can be applied to startups when dealing with VCs or when a startup is negociating a new partership/deal or any kind and that third party is a Goliah
- msantos 14y agoSurely these 10 Rules can be applied to startups when dealing with VCs. Or to startups when negotiating a new partnership/deal of any kind. I my own case, I recently tried to approach a mid sized payment gateway company when I was spec'ing for a possible entrepreneurial stab in South America. As it turns out, the number 5 hit me hard. 5. Legal documents are created to protect the preparer (and its firm), not you or yours
- stevievee 14y agoAs much as number 5 and the rest of the rules are great advice, they are bias and meant to put you on the defensive. Legal documents are only binding because you agree to them. If you or your agent or lawyer do not read AND understand them, then what do you expect? Not only can these be applied to wall street deals and VCs, but they apply to most situations. I think the best rule here is number 10. Financing is not free money.
- msantos 14y agoI agree with the point you raise and add more, folks without any business or negotiation skills are in for a hard and bumpy road when trying to get financing. Of course the hard way is not always the only road, there are other factors such as luck and getting a skillful partner, minder or simply paying for consulting. But my original point was that in my own particular case when negotiating, I was taken by surprise, to say the least, by the requirements of my counterparts - due to NDA I can't talk about the deal nor mention anything remotely related to it