Today's advice comes from Seth Priebatsch, founder and "Chief Ninja" of SCVNGR.
"I basically had never negotiated with VCs before and definitely in the first round very much let them set the terms of everything.
"I went to them and I said "hey, here is SCVNGR, I thinks it's phenomenal. I'm very passionate about it. How much do you think it's worth?" And they told me. And I probably ended up giving up too much of the company to investor control from that.
"In the more recent rounds it's been more like we do evaluations internally ourselves and we go the VCs and we say, "Here is SCVNGR. It's a great company and here's what it's worth. Would you like to give us money at that value?"
"And a lot say yes and a lot say no. But that was one of the more costly mistakes I made in the first couple rounds."
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