A recent article called Step-by-Step Fundraising Tactics from the NYC Legend Who Raised $750M basically says that yes, you do.
The “legend,” Kevin Ryan, says that if you’re feeling uneasy about how realistic your projections are and a VC asks you point blank about it you should say “We are absolutely going to make those numbers.”
He advises, “Investors need to feel that you’re going to build a big business and that you have no doubts about it.”
Do you feel uncomfortable having to hide your realistic and honest opinions about your business? Don’t worry, says Ryan, “You basically start to believe your own bullshit after a while, and that’s a good thing.”
How is it that one of the most well-known and celebrated sources of start-up funding, venture capital, is based on lies and exaggerations? Even crazier is that both sides know it. It’s a game that is played by bizarre rules, rules that don’t favor the honest and humble entrepreneur.
Is it any wonder that we are seeing so many VC-backed companies fall apart as their leaders blatantly flout regulations, condone toxic workplace cultures, and lie to inflate their numbers?
Here is a solution for entrepreneurs looking for funding: don’t seek VC funding and find investors that value honesty, authenticity, and integrity.
Need help figuring out how? Come to our March training for women entrepreneurs – Fund and Fuel Your Dreams Live.
The image I used for this post comes from the amazing article, Sex and Startups.
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