The best founders are also great negotiators.
However, the best founders recognise that fundraising is only a tiny part of growing your biz. Over-negotiation, esp. on points that have low probability of occurrence, or low commercial outcome, shows lack of focus.
Almost all founders who have delivered outsized growth and profits, devoted their negotiation to one or two critical points and were willing to be flexible on most other points.
The same goes for VCs.
Additionally, If you are the lead investor, continue to have a presence during termsheet/SHA negotiations. Investors who outsource negotiations to a team member don’t build as strong of a partnership with founders.
It’s a tough balance to maintain, but here is something I tell founders during negotiations:
This is probably the last time we are negotiating from two sides of the table. For your next round, we’ll already be partners and will put in just as much effort negotiating on your behalf.
That’s real partnership.