Negotiation is a straightforward game. You can only negotiate if you have options.
A long time ago, when I was a young entrepreneur making my way in Silicon Valley, I found myself at the mercy of people who knew I had no option.
I did not have a Green Card.
My negotiating leverage was limited, almost non-existent.
And people took advantage of me.
I have mentored entrepreneurs now for well over a decade. I always try to help them create negotiating leverage.
There is nothing that gives entrepreneurs more leverage than customers and revenues.
The further you can get in terms of building traction without external funding, the more negotiating leverage you will have.
Look for every possible avenue through which you can maximize validation and traction.
When you appear in front of VCs fully equipped to answer each of these questions with utmost credibility, you slot yourself in that exclusive bucket of startups that VCs are all falling all over themselves to invest in.
You see, Venture Capital is a game where too much money routinely chases too few deals.
Those few deals get an inordinate amount of attention.
Valuations inevitably get bid up through competition amongst investors.
The only way an unproven entrepreneur can enter that exclusive club is by having solid proof points that signal a high velocity business with a large market opportunity.
You may be getting confused because all you read in the media are stories of venture funding.
Media, unfortunately, doesn’t report on customer wins.
And yet, your route to success rests in chasing customers, not investors.
This segment is a part in the series : Best of Bootstrapping