Kimball: Lowball VC negotiation tactics damage founder trust and board relationships
Spencer Kimball · 20VC: How Investors Can Get Into The Best Deals & Why Founders First Point Of Contact Should Be With The Investment Decision-Maker with Spencer Kimball, Founder & CEO @ Cockroach Labs · Apr 14, 2017 · at 10:25
Spencer Kimball, founder and CEO of Cockroach Labs, explains why aggressive lowball offers and chaotic deal negotiations from VCs create lasting friction for future board dynamics.
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“So, you know, like you establish that trust early and I'm sorry, but like the, a very chaotic and unpleasant negotiation phase is not a good way to, you know, have then, you know, have that person transition onto your board. I know I think that there's a much more constructive way and that actually involves being very Fair and open with your offers and not kind of lowball as a negotiation tactic. It feels like a used car salesman. That's not the kind of person I want on my board.”
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