

Startups should learn from "10 Rules for Dealing with the Sharks on Wall Street" - msantos
http://www.ritholtz.com/blog/2012/09/10-inviolable-rules/
Surely these "10 Rules for Dealing with the Sharks on Wall Street" can be applied to startups when dealing with VCs or when a startup is negociating a new partership/deal or any kind and that third party is a Goliah
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msantos
Surely these 10 Rules can be applied to startups when dealing with VCs. Or to
startups when negotiating a new partnership/deal of any kind. I my own case, I
recently tried to approach a mid sized payment gateway company when I was
spec'ing for a possible entrepreneurial stab in South America. As it turns
out, the number 5 hit me hard.

 _5\. Legal documents are created to protect the preparer (and its firm), not
you or yours_

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stevievee
As much as number 5 and the rest of the rules are great advice, they are bias
and meant to put you on the defensive. Legal documents are only binding
because you agree to them. If you or your agent or lawyer do not read AND
understand them, then what do you expect? Not only can these be applied to
wall street deals and VCs, but they apply to most situations.

I think the best rule here is number 10. Financing is not free money.

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msantos
I agree with the point you raise and add more, folks without any business or
negotiation skills are in for a hard and bumpy road when trying to get
financing. Of course the hard way is not always the only road, there are other
factors such as luck and getting a skillful partner, minder or simply paying
for consulting. But my original point was that in my own particular case when
negotiating, I was taken by surprise, to say the least, by the requirements of
my counterparts - due to NDA I can't talk about the deal nor mention anything
remotely related to it

