This paper will analyze the rationality of negotiations in rounds of negotiation, specifically those involving Venture Capitals with Start-Ups. To understand the rationality of these negotiations, game theory will be used to create a specific theory for these cases. However, the limitations of game theory would constrain the proposed theory. Hence, chaos theory is introduced to explain outlier cases that deviate from the proposed theory. Once the theory is devised, it will be applied to practical cases by applying it to different case studies or historical data.
