Equity

I almost left a negative comment on a recent VC advice post. Something I usually don’t do.

The author insisted that founders should “lay down the law” on what terms are acceptable from investors. Bold take. Misleading too.

Here’s the truth: If it’s your first round, and they have the money—you’re not dictating terms (there are rare exceptions, keyword: rare).

Raising venture capital isn’t just a negotiation—it’s a relationship. And it’s not symmetrical.

I once had an investor call me 17 times in one day—while I was hosting a summer cookout with my team—because I hadn’t closed the next round. Pressure? Yep. Helpful? Nope.

Here are a few truths I learned the hard way:

✅ The right investor is your partner, not just your ATM.
If they can’t stomach risk, they’ll micromanage your every move. The right investor will be here for it – and bring clear value.

✅ Not all money is equal.
I once took a bridge loan to make payroll. My lead investor was furious—not just because I got leverage as they dragged their feet on closing the round, but because they didn’t consider the investor in the same league. Do what’s best for your company.

✅ Term sheets are not infinitely flexible.
The best way to negotiate one? Have another. Tip: Keep interested parties separate unless they are building a syndicate.

✅ Don’t raise when desperate.
They will see your numbers. A shaky balance sheet weakens your position and removes any leverage. Plan for min 6-12 months in runway.

✅ Fundraising is sales. Treat it that way.
Segment investors just like you do customers: hot, warm, cold. Follow up. Personalize. Don’t spray updates and pray.

The VC game is nuanced. It’s more art than science—and always about strategic control.

Remember: You don’t control the money – until you do.