Negotiating Better Deals as a Founder: Negotiation Tips After 50+ Million in Funding and an 80 Million Exit – Benjamin Günther, Alasco

About this episode

As a founder, you face negotiations daily – whether it's hiring talent, closing funding rounds, or selling to customers. But how do you negotiate effectively and extract maximum value from every deal?

Benjamin Günther, founder of Alasco, brings the perfect credentials to answer this question. With his current company, he has already raised over 50 million euros from renowned investors including Insight Partners, Lightrock, HV Capital, Picus Capital, and Global Founders Capital. Previously, he was involved with Stylight, which according to media reports was sold to Pro7 for 80 million euros. He hasn't just perfected his negotiation skills for himself – he has also coached Hanno Renner and the Personio founding team after his investment.

Proper Preparation is Key

Negotiations begin long before the actual conversation. Thoughtful preparation is the key to success. This isn't just about knowing your own arguments, but also understanding the position and motivation of the other party.

"You need to be clear about what you want to achieve and where your red lines are," explains Günther. At the same time, you should play through alternative scenarios and have various exit options ready.

When Tactics Make Sense

One of the most common questions from founders: How tactical should you be in negotiations? Günther recommends a balanced approach. While transparency and honesty are important, it doesn't hurt to keep strategic trump cards up your sleeve.

Especially in funding rounds, you shouldn't immediately accept the first VC offer. Instead, it's worth developing multiple options and weighing them against each other.

Leveraging Third-Party Power

A clever negotiation trick is not positioning yourself as the sole decision-maker. "I need to discuss this with my co-founder" or "The board needs to approve this" – such statements give you thinking time and negotiating room without appearing difficult yourself.

Timing is Everything

Controlling the timeline of a funding round is crucial. Günther recommends structuring the process so that you, as the founder, determine the pace, not the investors. This also means starting fundraising early, before liquidity becomes tight.

At Stylight, the exit process stretched over several months. In today's market conditions, such a process would probably take longer, as buyers have become more cautious and due diligence phases are more intensive.

Staying Fair in VC Selection

What do you do when multiple VCs are interested in your company? Günther emphasizes the importance of fairness and transparency. Communicate openly that you're speaking with various investors and give everyone a fair chance. When you finally decide on a VC, share your decision respectfully with the others and explain your reasoning.

From Stylight to Alasco: Implementing Learnings

The switch from fashion (Stylight) to real estate (Alasco) may seem surprising, but it was strategically thought out. Experiences from the first company flowed directly into founding Alasco.

From the beginning, Alasco positioned itself as a VC case – a company designed for scaling and investors from day one. This influenced both personnel and structural decisions and made the company more attractive to investors.

Building Teams: External Recruitment vs. Internal Development

Regarding whether to recruit externally or develop internal employees, Günther offers pragmatic advice: It depends on the situation. If specific expertise is needed quickly and the internal team isn't ready yet, you should recruit externally. In other cases, internal development can be both more cost-effective and culturally advantageous.

Negotiation Quick Wins for Immediate Implementation

In closing, Günther shares concrete tips that every founder can implement immediately:

• –Prepare thoroughly and know your alternatives
• –Use the power of third parties
• –Control the timing
• –Stay fair and transparent
• –Practice negotiations in less critical situations

Negotiation skills develop over time. The more you practice and reflect, the better you become. Benjamin's experiences show: With the right approach, you can achieve significantly better deals as a founder.