10 lies entrepreneurs tell
·7 Jul 2013
Guy Kawasaki, adviser to Google-owned Motorola Mobility, author, and co-founder of Alltop has compiled a list of the top lies entrepreneurs tell.
According to Kawasaki, for tech startups to be successful, “being in the right place at the right time is at least 50%”, adding that “a detachment from reality is the most dangerous factor,” when launching a tech startup.
He said from his experience in listening to pitches, he has seen two sets of top 10 lies: one of entrepreneurs and one of investors.
Top 10 lies of entrepreneurs:
- “Our projections are conservative.”
- “Jupiter says our market will be $50 billion in 10 years.”
- “Several Fortune 500 companies are set to do business with us.”
- “No one else can do what we’re doing.”
- “Hurry up because other investors are about to do our deal.”
- “Our product will go viral.”
- “The large companies in our market are too big, dumb, and slow to compete with us.”
- “Our management team is proven.”
- “We filed patents so our intellectual property is protected.”
- “All we have to do is get 1 percent of the market.”
Top 10 lies of investors
- “I liked your company, but my partners didn’t.”
- “We are patient investors who want to help you build a great company.”
- “If you get a lead, we’ll invest too.”
- “There are no companies in our portfolio that conflict with what you’re doing.”
- “Show us some traction, and we’ll invest.”
- “We love to co-invest with other firms.”
- “We’re investing in your team.”
- “We have lots of bandwith to dedicate to your company.”
- “This is a plain, vanilla termsheet.”
- “We will get other companies in our portfolio to work with you.”
“Do you know what the difference is between the lies of entrepreneurs and the lies of investors? The investors have money,” Kawasaki said.
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