1. Top Ten Lies

2. Top Ten Lies Our projections are conservative
IDC forecasts that our market will be $50 billion by 2003.
Amazon will sign our deal next week
Key employees are set to join as soon as we get funded.
We have no competition

3. Top Ten Lies Our projections are conservative
Investors believe financial forecasts are inflated, they are more interested in the logic of a reasonable financial model
IDC forecasts that our market will be $50 billion by 2003.
Instead of claiming the market is big, enable the investor to see for him/herself that it is big
Amazon will sign our deal next week
NEVER talk about a Big Deal until it’s a signed deal.
Key employees are set to join as soon as we get funded.
We have no competition

4. Top Ten Lies Our projections are conservative
IDC forecasts that our market will be $50 billion by 2003.
Amazon will sign our deal next week
Key employees are set to join as soon as we get funded.
Litmus test of fundability is the ability to attract talent
We have no competition
Investors hear similar pitches 5 times a week – they know there is competition

5. Top Ten Lies We need you to sign a non-disclosure
Cisco is too slow to be a threat
We’re glad the bubble has burst
Our patents make our business defensible
All we have to do is get 1% of the market

6. Top Ten Lies We need you to sign a non-disclosure
They have heard similar proposals 5 times this week – they can’t sign a non-disclosure
The ability to implement an idea, not keep it a secret, is key to funding
Cisco is too slow to be a threat
Show a healthy respect for incumbents while demonstrating a believable way to compete
We’re glad the bubble has burst
Our patents make our business defensible
All we have to do is get 1% of the market

7. Top Ten Lies We need you to sign a non-disclosure
Cisco is too slow to be a threat
We’re glad the bubble has burst
No you’re not – no one is
Our patents make our business defensible
Investors believe that what makes a company defensible is the ability to out-implement, not out-litigate
All we have to do is get 1% of the market

8. Top Ten Lies We need you to sign a non-disclosure
Cisco is too slow to be a threat
We’re glad the bubble has burst
Our patents make our business defensible
All we have to do is get 1% of the market
Shooting for the top dog position is more attractive to an investor than claiming it will take only a small % to succeed