The article gives valuable insights into raising capital and the art of negotiation in this domain.
Overall, negotiation and funding could almost be expressed as a rule table. Certain heuristics and rules. Rather than flip flopping strategies on how to negotiate and deal with investors, I think it may be good to have a set of rules/heuristics to follow and see if it leads to your goal. If it fails, alter it and see the result. Anyhow, thats what I intend to do for my company, GridCrowd.
For negotiation PG mentions that its may be ok to just admit your a noob or not knowledgeable on certain aspects of funding. I respectfully wonder if there is another stratedgy from what I've learnt in negotiations in the non-funding world?:
Negotiate from a perceived position of strength.
You don't have to say your a noob, miss the detail and expose it if it becomes necessary. This way you may be able to attain more action on behalf of the investor moving through their process. The noob strategy allows them to indicate a process that could be tailored to their advantage. I don't know investors, so its hard for me to understand their objectives and how they behave. I'll re-read PGs advise again, he does have great credibility and wiseness so maybe I need more study on this strategy.
Overall, negotiation and funding could almost be expressed as a rule table. Certain heuristics and rules. Rather than flip flopping strategies on how to negotiate and deal with investors, I think it may be good to have a set of rules/heuristics to follow and see if it leads to your goal. If it fails, alter it and see the result. Anyhow, thats what I intend to do for my company, GridCrowd.
For negotiation PG mentions that its may be ok to just admit your a noob or not knowledgeable on certain aspects of funding. I respectfully wonder if there is another stratedgy from what I've learnt in negotiations in the non-funding world?:
Negotiate from a perceived position of strength.
You don't have to say your a noob, miss the detail and expose it if it becomes necessary. This way you may be able to attain more action on behalf of the investor moving through their process. The noob strategy allows them to indicate a process that could be tailored to their advantage. I don't know investors, so its hard for me to understand their objectives and how they behave. I'll re-read PGs advise again, he does have great credibility and wiseness so maybe I need more study on this strategy.