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

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Doing Business On A Handshake – AVC

I often wish we could do business on a handshake. I’ve been thinking about it more and more these days. We negotiate a sophisticated set of documents when we invest in a company and for the most part, those documents never come into play. Many times when things go badly, we rip up the documents and decide what to do based on an honest discussion among the interested parties. When things go well, all we need are the stock certificates.