Tell VCs Why Your Company Is Awesome Instead Of Asking How Much It's Worth

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		TECH MEDIA WALL STREET MARKETS STRATEGY SPORTS TOOLS POLITICS VIDEO Business Insider's New Newsletter Series "Marketing Mondays" Is Launching - Sign Up Now! Marketing Mondays delivers expert marketing advice from industry leaders to fellow Business Insider readers and contributors, covering a myriad of topics including (but not limited to) branding, social media, marketing mistakes and successes. The first newsletter will drop on Monday, April 18th.  Get on the list » April 15, 2011 INSTANT MBA: Tell VCs Why Your Company Is Awesome Instead Of Asking How Much It's Worth Advertisement Today's advice comes from Seth Priebatsch, founder and "Chief Ninja" of SCVNGR: "I basically had never negotiated with VCs before and definitely in the first round very much let them set the terms of everything. I went to them and I said "hey, here is SCVNGR, I thinks it's phenomenal. I'm very passionate about it. How much do you think it's worth?" And they told me. And I probably ended up giving up too much of the company to investor control from that. In the more recent rounds it's been more like we do evaluations internally ourselves and we go to the VCs and we say, "Here is SCVNGR. It's a great company and here's what it's worth. Would you like to give us money at that value? And a lot say yes and a lot say no. But that was one of the more costly mistakes I made in the first couple rounds." Seth Priebatsch, Founder and "Chief Ninja" of SCVNGR Want your business advice featured in Instant MBA? Submit your tips to tipoftheday@businessinsider.com. Be sure to include your name, your job title, and a photo of yourself in your email. Visit War Room for head-snapping advice and profitable insights for entrepreneurs, small businesses and managers. » Share this email: Buzz Facebook Twitter Digg Reddit StumbleUpon The email address for your subscription is: dwyld.kwu.careers@blogger.com Manage Email Preference | Unsubscribe | Subscribe | Subscribe to War Room RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy