The Art of the Start/Kawasaki 144-145

145 When should an entrepreneur reverse a negative decision by arguing?...I’ve never seen an entrepreneur reverse a negative decision by arguing.

What is a reasonable salary that a CEO should set himself up with that will not scare an investor away?...The CEO should not be paid more that four times the lowest-paid full time employee.

Angels want entrepreneurs to have some skin in the game. I don’t have any money to invest in the business. How do I overcome this? What do venture capitalists look for these days as fare as “skin in the game”?...you will have a lot of skin in the game in the form of days of sweat equity.

If I do not have an IPO or acquisition as my exit strategy, will I ever be able to attract investors? Would investors ever be interested in making their return through profit sharing or a buy-out from the founders of the company in five to ten years?...If the investors are professionals investors, you can forget about raising money without a shot at an IPO or acquisition. …But profit sharing or buying out investors is attractive to few investors.

Do entrepreneurs have to accept the valuation proposed by the venture capitalist who want s to invest into their businesses? …Whatever the first offer, ask for a 25 percent higher valuation because you’re expected to push back.