153 karma · joined October 16, 2018
1. Raise your next round for you through their connections, brand and signal by leading existing round. 2. Industry relationships to get you key partnerships, deals, or acquisition. 3. Recruit key executives from successful companies in same industry or similar biz model.
In my experience VCs optimize for percent ownership and valuation uplift on subsequent rounds. So lower valuations allow them to get more per dollar invested and larger gains on subsequent rounds. The places to negotiate are pre vs post money valuation, deal closing costs, board seats, voting shares. Ultimately these matter a lot more than valuation which is just a vanity metric.
At what frequency is this value delivered to the stakeholder?
How does the stakeholder know they are receiving value?
How does the value compare with the price paid?
What is the product’s TAM?
What things are out of the company’s control?
If the company doesn’t have a self-serve product ask why?
What is the company’s short-term, long-term distribution strategy
Explanations here:
https://medium.com/@therealpankaj/interview-questions-to-ask...