Level 1 — First terms conversation
Opening the investment discussion and mutual expectations confidently.
Discussing the initial investment figure with an angel investor.
The investor asks you exactly how you plan to use the money.
Explain to the investor exactly what you expect from them beyond capital (expertise, networking).
Level 2 — Negotiating the valuation
Defending your company's valuation and reaching common ground.
Defending your company's valuation against a lawyer representing the fund.
The investor offers a lower figure than what you requested, and you must negotiate a compromise.
Propose linking part of the valuation to achieving future milestones to bridge the gap between perspectives.
Level 3 — Term sheet clauses
Understanding and negotiating complex legal clauses in the term sheet.
The lawyer discusses the Liquidation Preference clause and its impact on you as a founder.
Ask about the clause that protects investors from share dilution in future rounds.
Discuss a clause that prevents you from accepting other investment offers for a specific period.
Level 4 — Board seats and control
Drawing balanced lines between investor control and management independence.
The investor is requesting a seat on your company's board in exchange for their investment.
The investor tries to interfere in day-to-day operational decisions, and you must set clear boundaries.
Discuss vesting terms and the potential for your dismissal as a founder under specific circumstances.
Level 5 — Closing the final round
Settling the last sensitive points and handling pressure tactics before signing.
The final round of negotiation before signing the definitive agreement; every detail must be settled now.
The investor threatens to pull out of the entire deal if you do not agree to one final condition.
After agreeing on all terms, conclude the meeting with a formal signing and build a positive foundation for a future relationship.