Chapter 19: Deal Presentations and Negotiations

The creators of a new enterprise need to tell their story about the future of their business. Establishing credibility and trust through presentations of the venture’s innovative solution to an important problem can lead to an investment.

The integrated vision, story, and plan, including the business model, should show how the solution will be profitable within a reasonable period. Investors are interested in a favorable financial return. They also want to believe that they can be partners with trustworthy and capable entrepreneurs. A sample business model is provided in appendix A. Links to additional business plans, models, and slide (pitch) decks are provided on the textbook’s websites.

Negotiating a deal with an investor is an important part of the process. One can cement the relationship or destroy it through the negotiation process. The terms of the final agreement should align the means of achieving the potential return with the allocation of risk between the investors and the entrepreneurs.

1. “Energetic Fundraising” with Peter Diamandis, Human Longevity

2. “Tips for A Good Pitch” with Heidi Roizen, DFJ

3. “Tell the Story Better than Anybody Else” with Tristan Walker, Walker & Company Brands

Continue to Chapter 20

Tom Byers, Stanford University

Tom Byers is a Professor in the Department of Management Science & Engineering at Stanford University and a faculty director of the Stanford Technology Ventures Program (STVP).

Andrew Nelson, University of Oregon

Andrew Nelson is Associate Vice President for Entrepreneurship and Innovation and an Associate Professor of Management at the University of Oregon.

Richard Dorf, University of California, Davis

Richard C. Dorf is a Professor Emeritus of Management and Electrical and Computer Engineering at the University of California, Davis.