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BS

Ben Silbermann

10/25/13

@ Y Combinator

If you really need money and the investor knows they are your only option, you have no leverage in negotiations, which puts you in a tough spot.

Video

YC

Ben Silbermann at Startup School 2012

@ Y Combinator

10/25/13

Related Takeaways

GR

Geoff Ralston

10/11/18

@ Y Combinator

Having multiple funding options strengthens your negotiation position; if you're the only one seeking investment, the investor holds more power.

MS

Michael Seibel

12/17/21

@ Y Combinator

If you find a lead investor, the lead often wants to invest the entire amount to meet their ownership target, which can limit your options.

KN

Kirsty Nathoo

08/22/19

@ Y Combinator

It's risky to rely on investors for additional funding, as they may not always provide it when you expect.

MS

Michael Seibel

11/29/18

@ Y Combinator

When you don't need investment, investors often come back wanting to provide more funding, which highlights the importance of leverage in business.

GR

Geoff Ralston

10/11/18

@ Y Combinator

In negotiations, you can delay your response to avoid making hasty decisions; don't feel pressured to match the investor's expertise.

MS

Michael Seibel

06/02/24

@ Startup Istanbul

If you don't need money, investors will be more eager to give it to you, so structure your company to minimize initial expenses.

MS

Michael Seibel

12/17/21

@ Y Combinator

As a first-time founder, you're unlikely to negotiate as effectively as an experienced investor who deals with multiple companies.

MH

Matt Hackett

11/01/17

@ Y Combinator

A strong 'no' from an investor is rare; often, you'll receive vague encouragement that doesn't translate into actual investment.

YC

Y Combinator Cast

05/21/16

@ Y Combinator

It's really bad to go into a meeting with an investor and not understand the specific terms being negotiated.