Tip 81: Deal structure – too much momentum. We recently heard one entrepreneur say during a pitch that she was in due diligence with 13 angel funds and groups. At first glance, this sounds impressive – lots of interest, lots of momentum, get on board before you miss out.
But the reaction from our members was something approaching incredulity (“You’re in diligence with 13 angel groups? Is that even possible?”), which didn’t really help with maintaining credibility.
Worse still is raising too much “FOMO.” Yes, we have a fear of missing out of good deals. But we have an offsetting fear of wasting a lot of time hearing pitches on roadshows and doing our due diligence only to find the round is full and we couldn’t participate after all. Failing to get into diligence with us because we thought it unlikely we’d ever get the chance to invest is perhaps not the result you are pitching for?