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

Y Combinator (a startup accelerator based in Mountain View, CA.)
The Handshake Deal Protocol

We’re going to start using this within YC, and we hope it will spread to the rest of the startup community. The protocol defines an offer as an amount to be invested, plus a valuation or valuation cap (or no cap), plus an optional discount. Here are some example offers: $100k at $5 million pre-money. $100k at a $5 million cap. $100k uncapped. $100k uncapped with a 10% discount. According to the protocol, you have a handshake deal if and only if t… (read more)