I have been able to get significant interest from a good number of well suited angels for my business, after many months of looking for folks who grok my industry.
But now, it's the middle of the summer and folks are beginning to go on vacation and I want to just get this done. We are not desperate for the cash but if we can get the round closed soon, we can act in time to scale up for a big opportunity. The guy we have asked to consider being our lead investor is just not moving very fast because he has something big going on with a couple of his other companies.
David Cohen said I can just pull all these folks together in a room and negotiate terms-- he called it a party round. Since most of these investors have seen our full business plan and our financial model and are all pretty psyched about the business, we need to get down to negotiating the terms and percentage of company for the $$ we are raising.
What are the pros and cons of a party round versus waiting for a lead investor? Am I better off just asking one of the other folks to be the lead? Does the party scenario set my team setting up to be in a bad negotiating position by being outnumbered, or would the fact of all of these investors showing up together help us & seal the deal?
If we do just get all the investors in a room to negotiate terms, what should the dynamics in the room look like? Should we work thru terms first and save the valuation conversation to the last ($$)? Should we run it like a poker game or take a different attitude?