
Game Theory and the Startup Valuation Game - siegel
http://onstartups.com/tabid/3339/bid/200/Lessons-from-MIT-Game-Theory-and-The-Startup-Valuation-Game.aspx
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siegel
Answer can be found at this URL:
[http://onstartups.com/tabid/3339/bid/198/Game-Theory-and-
Sof...](http://onstartups.com/tabid/3339/bid/198/Game-Theory-and-Software-
Startups-Part-II.aspx)

While I'm not sure that I buy the author's advice, I have been thinking about
ways in which founders can think outside the box in attracting funding and
signaling as part of negotiating a funding round - if they want to go the VC
route.

Obviously a huge part of getting the highest valuation and the best terms out
of a VC round rest on how the founders can directly sell investors on the
prospects for their business by talking about the technology, market,
financials/projections, etc...

But negotiating a funding round is still just that - a negotiation.
Professional investors are well-aware of this and are strategic negotiators.
From the founder side, I see much less of the type of strategic negotiation
thinking than I do on the investor side.

Curious if other agree or disagree.

