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Technology Stocks : WAVX Anyone?
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To: Paul Schmidt who wrote (3624)8/13/1998 8:02:00 PM
From: SDR-SI  Read Replies (1) of 11417
 
Paul:

I believe there is a basic fallacy in your assumptions regarding the approach to venture capital negotiation.

In a situation with a technological product or service with high market potential, the developer/entrepreneur cannot and should not approach the negotiation with financial people with an attitude that he is negotiating from weakness. It is HE who has the theoretically unique product or service - there are MANY people with money. If he believes he is in a position of weakness, he has already lost the battle.

Without becoming obnoxious about it, he must approach the negotiation with the attitude that both he and the financial people bring something important to the table. They will be contributing a relatively available commodity ($$$$) and he will be contributing his unique product or service. HE is giving THEM the opportunity to participate in the development of the firm and its product or services.

If he thinks he is begging them for money, the end result will not be a good one.

Your friend should seek counsel of others experienced in the bringing of ventures to venture capitalists, or else he will get eaten alive, will give away the store, and will find he is working for them, rather than they supplementing his financial capability.

Hope some of this may be helpful.

Steve
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