As a 20 yr old founder, you will negotiate your most important term sheet
(Series A) when you have the least experience while on the other hand, your
prospective investor knows how the game looks like many moves from where you

It is not a fair game at all, it is no surprise why great companies get terrible
deals all the time.

I have covered how to negotiate effectively in one of my previous posts.

In this post, I will talk about what you should keep in mind while raising
Convertible Debts (CDs)

Whenever you decide to raise debt from VCs always try to close deals from
multiple venture firms. If you don’t do this, you will restrict your options and
lower your series A valuation on your own.

This is because your prospective Series A investors will only invest when they
are assured that they may co-invest with your existing investor. And if the
existing investor decides to not invest, your prospective investors will doubt
the credentials of your business model.

However, if you decide to raise debt from multiple VCs, the influence of anyone
insider will substantially decrease.

You need to put multiple firms against each other to get the best terms for the
convertible debt, otherwise, you are shooting yourself on the foot. Trust me on

Originally posted by Naman Shrivastava on LinkedIn