270 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company
◾ Anti-dilution provisions
◾ Right of rst refusal on new share offerings
◾ Excessive management fees
13.10 Last Words of Advice
“Speak the truth, but shut up immediately after.”
Rookie entrepreneurs have a tendency to exaggerate their technology and
their accomplishments. While this may be somewhat acceptable with the 3Fs
and even with Angels (“puffery”), it is a deal killer with VCs.
Most VCs are highly experienced professionals, who “have been there…
done that.” Following is a short list of “entrepreneur spin” that could short-
circuit your plans:
◾ Our sales projections are super-conservative (we will gain 10% of the
market in a year).
◾ The market potential for this ...