[fragsworth]

I get two different stories from different crowds on this issue.

From many VCs and angels themselves - at least the ones that get their articles upvoted on this site - I get the impression that they dislike being bullshitted at. They hate people who are disingenuous. They don't care too much about projections or future plans. They just want to see how good your team is.

From everyone else in the industry (those looking for investment, those who have found investment, executives in large companies, etc.) I hear a completely different story. Tell them the world. Make projections bigger than you think is realistic. Talk yourself up. Show interest in things that the VCs are interested in - even if you aren't. Create a story of the future that will please the investors. This is not always exactly the same story you really want to go with.

Now I really prefer doing the former to the latter. I just don't know how effective it really is and I hear different stories about how to behave when searching for investment. VCs and angels aren't mind-readers, they aren't super-human, and they have the same failings as everyone else. If you can get away with the latter without appearing dishonest, you might have a better chance at bagging the investment deal.

[rms]

I think you're supposed to be ingenuously hypomanic. You're supposed to talk yourself up, promise the world, etc., but it's important that you sincerely believe it and are not just a bullshit artist. This requires you to be a little crazy.

http://www.fastcompany.com/magazine/160/bill-nguyen-startups

[drumdance]

Recently on a date with a non-tech person I described my company as "not likely to be a billion dollar company, but a good one nonetheless." She was shocked that I would even mention the b-word. I need to get out more. :-)

[dm8]

In tech (especially SF bubble) we forget billion dollars is lot of money.

[biot]

Not to burst your bubble, but from the standpoint of pure probability it's not likely to be a million dollar idea either. However, I don't know anything about you or your company so maybe you've beaten the odds and your company is on track to having an arms-length valuation greater than a million dollars already.

[drumdance]

I agree completely. My point is that when I'm talking to entrepreneur types this sort of talk is shorthand for how I describe the company's potential.

[wtvanhest]

Here is an alternative way to look at the advice:

Avoid the future tense – If you looked at 100 presentations, which would really stand out? The ones that stand out are from teams that have accomplished a lot and have a clear path to making money, not groups that are still figuring it out. You obviously want to talk about the future, but the future is fluff so more substance is better.

Avoid overusing buzz words – Buzz words are commonly filler for teams that don’t know what they are doing. I’m sure that if you had a real product making money and a clear path to success you could still get funded using buzz words, but you wouldn’t want to use them because you would have more important things to talk about.

Understand the mechanics of your business – You should be an expert on your business and have thought of all the options and can explain the pluses and minuses of each option. If you are starting a grocery store (obviously not a VC fundable business, but stay with me), you would need be able to explain why you choose the Trader Joes style over the Wholefoods style or over the Walmart style and be able to explain each of those businesses and why one can be more or less profitable than the others.

Pitch me your team – There is a lot more written about this other places.

Target the right business – He says in the first line, be better than everyone else in your market, and I think that is a requirement. No one wants to fund a product or business that has no edge whatsoever.

[coenhyde]

I know what you mean. In my limited experience ones who raise funds are the ones who know how to bullshit. Maybe VC's are exposed to soo much bullshitting they do not know what honesty is anymore?

[dhimes]

VCs have unique personalities, strengths, and needs like everybody else. For example, you can see this in the descriptions of the five mentioned. DM is all about execution; PM is into the vision- sell the vision and convince him you can carry it out; LL is all about strategy; VL is wants a good "general"- he's about how you are going to lead the troops. MH isn't so clear from the information presented, somewhere between strategy and execution I would suspect.

Disclaimer: I know none of them, I am just pointing out how their descriptions vary. The descriptions are surely inadequate to classify these particular people so consider it for illustrative purposes only.

[deepGem]

There's a fine line between bullshitting and using the right jargon. A good analogy is your resume. If you don't use the words that the recruiters look for in a resume - even if you are very good at what you do, you won't get past the automatic software screeners. Similarly if you don't use the correct jargon with the VCs, it's very unlikely that you'll get past their initial screen test. You don't have to bullshit about your plan, your team or your future goals - but you need to use the right words and language to describe them.