Tue, 11 March 2025
Don’t Overhype It Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, it’s important to articulate all the values in the deal. If you don’t mention it, then it doesn’t exist in the investors' minds. Investors only know what you tell them. Include the values in the deal such as customers, other investors, partners, and team members, to name a few. You want to show everyone is supporting the effort and more are coming. In the process, don’t overhype the deal. Don’t indicate you have revenue when you do not. Don’t say you have won a contract when it is not yet signed. Don’t talk about a new hire if they haven’t actually joined yet. It’s okay to talk about the potentials and what is in the works, but don’t go so far as to pretend you have something that you don’t. Ultimately, the investor will learn everything about the deal, and if it doesn’t match with what you said, then you will have a credibility problem. In summary, make sure you highlight all the great things you have going in the deal, but don’t overhype it with things that don’t yet exist.
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