5 min read
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It was pounding rain outside my bedroom when my co-founder bursted through the door in a panic. He didn’t wait for my reaction to explain his ever pressing fear.
“One of our investor leads is on the phone and he’s about to walk away. He said we were too aggressive! How do we save this?
I responded immediately: “What did we do? We asked way too much on the valuation, right?”
“I bid him up on price too much and he is just threatening to walk away. He is not even picking up the phone. He just periodically texts me now. It’s very scary.”
“Give it some time,” I responded. “Then, let him get in touch with you on his schedule. Make him want to come to you.”
Although my co-founder and I quickly closed this particular deal in a matter of days, it shows how entrepreneurs can take a negotiation too far with investors and easily screw up a potential investment.