Jeff Bussgang from Flybridge has today’s great VC post titled In VC deals, Price Doesn't Matter - But The "Promote" Does.  While I personally dislike the phrase “promote” to describe the concept Jeff is describing (I think “founders post-deal ownership value” - or FPDOV - is a much better phrase, although I realize “promote” is catchier.)

If you are an entrepreneur negotiating a VC financing, you should read this post carefully.  Jeff does an excellent job explaining one of the key ways that VCs outnegotiate entrepreneurs while making the entrepreneur feel good about the outcome.