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Overview of the exercise
Start-up & VC Negotiation is designed to help participants
learn the key elements and dynamics of fund-raising and how
to devise effective negotiation strategies.
Start-up companies have to negotiate with VCs in order to
get funding and VCs have to negotiate deals at favorable terms.
Both parties have to derive what is important to the other
party and devise negotiation strategies that result preferably
in win-win solutions.
Ideal group size: 16 – 50 people
Duration: approximately 1.5 – 2 hours,
plus a 30 minute follow up discussion
Manpower: 1 or preferably 2 facilitators
Materials: Excel model to calculate results
(supplied), Information and deal sheets for both VCs and companies
(supplied) Identifying signs for the VCs
Calculators
Target participants
Entrepreneurs who want to learn how to negotiate with investors
to raise funds for their companies on the most favorable possible
terms.
Some of the key areas for learning and discussion
are:
1. The concepts of valuation, funds required, equity offered
and the dynamics of fund-raising
2. The importance of raising sufficient funds for start-ups
and investing sufficient amounts for VCs
3. The different types of negotiations and how to identify
them
4. Strategies to adopt depending on the type of negotiation
taking place
5. The importance of identifying the factors affecting the
decision made
6. How understanding the dynamics of the situation and the
deciding factors can put one in a more advantageous position
7. The impact of obtaining a sub-optimal solution and the
importance of a win-win situation
8. How to identify opportunities for creating win-win solutions
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