If you would like to hear me read this post, here is the audio version:
You know your life is all work and no play when you find yourself reading Venture Deals by Brad Feld and Jason Mendelson on a summer Saturday night. But my mind is on my business these days, so that is exactly what I found myself doing this weekend.
This is one of those books that I wish I had read before forming our business. It is 100-percent still relevant to me as we approach our ARK Challenge Demo Day and will officially be seeking investors. It is overwhelming to think about all the legal details that go into investment deals and the terminology has been foreign to me. This book cleared up the things I didn’t understand and explained in layman’s terms what these deals really mean, what I as an entrepreneur should worry about and which terms I should not really worry about. This book is now my go-to Bible for the investment deals we will enter after Demo Day.
Here are my key takeaways from the book:
- Read and understand every contract you sign. If that means the deal takes longer, so be it.
- Know what terms are most important to you before you enter into a negotiation.
- Don’t be afraid to negotiate.
- Remember that these investors are going to be your business partners going forward. You want to have a good relationship with them. Do everything you can to foster that relationship.
- Most importantly: hire a good lawyer, that you like and has experience in startup deals.
This book was not intimidating and made me feel so much more knowledgeable about the world I am entering into as an entrepreneur seeking investors. It is a must read for anyone even thinking about founding a business.