Chapter 14Bullshitters, Liars, and Jerks, Part 2: What You Need to Be on Guard For
Just as lenders and investors don't want to do business with bullshitters, liars, or jerks, you as a founder don't want to, either. You shouldn't have to. And you just shouldn't, period. You may be intimidated by their perceived power or swayed by your desire or need for funding, but I hope that doesn't make you compromise your standards. And as I said in the previous chapter, most of the people I've come across are honest and well-intentioned. But here's some help in avoiding the few that aren't.
Bullshitters
Bullshitters can be charming and entertaining. They're embellishing the truth more than blatantly telling lies. A general rule of thumb is to assume that someone who is trying to sell you something may be exaggerating in some fashion to be more appealing to you.
This is where you have to put your network to the test and try to find out something about this person's reputation. If you're talking to a potential investor, find out if they eventually come across with the funds. Do they have a reputation for delivering term sheets that differ vastly from the details you discussed? Do they have the connections they say they do? Anyone who advises you to be less than forthcoming or to misrepresent things is someone to avoid.
Bullshitters are less likely to harm you than liars are. Whether they fall on the spectrum of exaggerating rather than being completely full of shit, your biggest loss will ...