How can you ensure co-investors agree on deal terms?

2 Communicate clearly and early

One of the key factors for successful co-investing is clear and early communication. You should communicate with your co-investors about the deal terms as soon as possible, and keep them updated throughout the process. You should also be transparent and honest about your expectations, assumptions, and rationale. By communicating clearly and early, you can avoid misunderstandings, surprises, and disagreements later on. You can also solicit feedback, input, and suggestions from your co-investors, and address any concerns or questions they might have.

3 Negotiate fairly and collaboratively

Another important factor for successful co-investing is fair and collaborative negotiation. You should negotiate the deal terms with your co-investors in a way that respects their interests, perspectives, and contributions. You should also be flexible and willing to compromise on some aspects, as long as they do not compromise your core objectives and principles. By negotiating fairly and collaboratively, you can create a win-win situation for all parties involved, and foster a positive and productive relationship.

4 Document and formalize the deal terms

Once you have reached an agreement on the deal terms with your co-investors, you should document and formalize them in a written contract. The contract should include all the relevant details, such as the valuation, the equity stake, the voting rights, the board representation, the exit strategy, the anti-dilution provisions, and the dispute resolution mechanism. The contract should also be reviewed and signed by all the co-investors, and by the startup founders. By documenting and formalizing the deal terms, you can ensure clarity, accountability, and enforceability.

5 Monitor and manage the deal performance

After you have closed the deal with your co-investors, you should monitor and manage the deal performance regularly. You should keep track of the startup's progress, milestones, challenges, and opportunities. You should also communicate with your co-investors frequently, and share relevant information, insights, and feedback. You should also be ready to support the startup and your co-investors in case of any issues, changes, or conflicts. By monitoring and managing the deal performance, you can ensure alignment, consistency, and value creation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?