Open and transparent communication can only ensure success in negotiation. The founders and the investors should clearly state their expectations, concerns, and long-term goals. especially for most startups and early-stage companies. Rounds allow companies to raise funds by selling a stake in their ownership to investors for funds they use in scaling up on operations, product development, or expansion into new markets. While equity financing can bring about growth, the negotiation on terms is utterly essential to parties. This report analyzes the major terms in equity financing, negotiatory procedure, and the measures to ensure fair and successful outcomes for the parties.