[timr]

Every startup's "founding story" is in some part fictional, so the easiest thing is to just find something that doesn't make sense in their pitch, and ask about it, directly.

In the startup world, bullshitters are pretty much the norm, so finding bullshit isn't difficult. What's difficult is ignoring the hype bubble and social pressures that come with challenging people who are well-funded (and of course, sometimes you're wrong, which is part of what makes it hard).

Even if you're wrong, though, a non-bullshit answer to a pointed question will address the question. Most people, however, will just say words that dance around your question, clarifying nothing. In that case, you have to have the guts to keep asking followup questions, even if it makes the bullshitter uncomfortable.

When I think back over my history, I've always had a pretty good idea about the bullshit level of various employers simply by asking simple things like "how do you make money?" Good entrepreneurs will simply tell you (even if the answer is "we don't, yet"). Bad entrepreneurs will dress it up and try to hide their answer in word salad. Avoid these people.