http://www.businessinsider.com/8-lies-vcs-tell-entrepreneurs-2013-11
***SNIP
1. “We are very interested in investing, but it’s just too early.”
Translation: “I could be wrong, but I don’t think this thing will ever work. But just in case I’m wrong and this thing becomes another Snapchat, please give me a call and I’ll pretend we are best friends. Plus you seem like a very important person so I had better not piss you off and end up in some Oscar winning movie.”
2. “I’d like to build relationships with entrepreneurs first before investing.” Or, “We only invest in entrepreneurs we know.”
Translation 1: ”It really sucks when another VC buddy asks me if I’ve seen a particular deal, and I’ve never even heard of it. It makes me seem like I’m not the best and most connected VC in Silicon [add location] that I claim to be. So I had better tell everyone that if they want my money, they had better come to me first, even if (or because) it usually takes me six months to make an investment decision.”
Translation 2: “It really kills my buzz when I meet an entrepreneur for the first time and they already have a term sheet from the big boys like Sequoia/Benchmark/Accel/Greylock. I want in, but I can’t compete with these guys. Plus, I’m cheap so I don’t want to pay more than I have to. So I’ll say something that forces the entrepreneur to come to me with their idea first before they realize what a killer business they have so I can lowball them with a term sheet that explodes in two hours before Sequoia/Benchmark/Accel/Greylock has a chance to win them over.”
3. “We love the team but are uncertain about the market.”
Translation: “What a stupid idea. I can’t believe someone actually thinks this can work. He might take this personally if I really tell him the truth so let me try to kiss his ass a little bit before letting him down.”
Read more:
http://www.businessinsider.com/8-lies-vcs-tell-entrepreneurs-2013-11#ixzz2kLHShXTd
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