What’s the best way to negotiate with an investor?

Paul Graham (Co-Founder & Partner at Y Combinator)
Investor Herd Dynamics

One reason investors like you more when other investors like you is that you actually become a better investment. Raising money decreases the risk of failure. Indeed, although investors hate it, you are for this reason justified in raising your valuation for later investors. The investors who invested when you had no money were taking more risk, and are entitled to higher returns. Plus a company that has raised money is literally more valuable.