Most venture capitalists look for a reason to say “no.” They see a lot of deals. Why offer an obstacle that is otherwise in your control? Aside from traditional no-fly zones, like vulgarity, you may want to avoid comparing your effort to another company. The investor has agreed to a meeting to hear about your idea, not a modified version of someone else’s business model.
Perhaps the most common mistake is the request to sign a non-disclosure agreement. That seemingly simple demand can scream “amateur.” Professional investors are not about to steal your idea; the business does not operate that way. Venture capital is first-and-foremost a financial-return business. Another point: even the largest corporations do not have staff to review the standardized and often-irrelevant legal ramblings contained in such agreements. ■
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