The question is, do you negotiate or not? While reading this chapter it reminded me of something I wrote in the first blog of this book, the show Shark Tank. That is what the show is about. Entrepreneurs coming to the table to negotiate the best deal with these investors. They can take it or they can leave it. You have both sides protecting themselves while trying to get the best deal. These investors have a lot to bring to the table, and they know they are worth what they are counter offering to the entrepreneurs.
Every deal is different, and some angel investors may decide to not negotiate. Like I mentioned above, they know what they are bringing to the table and what it and they are worth. Another aspect of negotiating is personalities. I feel like a keep repeating this in every discussion, but the relationship you have between angel investor and entrepreneur will go a long way. I do not want to negotiable with someone I feel is not is not quite up to par. I have learned as I have gotten older and meet more people, there are many snakes in the grass. This is where having people in your corner, lawyer, financial advisor, and other people who are smarter than you to discuss deals with. Make sure you are negotiating fair. Weed out the deals that not good or you do not feel comfortable with and work with the ones that are good.
This book once again is showing me how much I do not know about investing. I still feel this route is not for me, but, I will research it more and take my own advice and talk with people who deal with these sorts of interactions and learn from them. Listen to what they have to say and take it all in for consideration. In order to grow, I know I have to step out of my comfort zone and talking with angels would definitely be out of my comfort zone. It could be the biggest blessing in disguise.