When to Walk Away
Here are the red flags that make me end meetings early:
1. Vague Answers
"What's your business model?" "We'll figure it out."
No.
2. No Differentiation
"We're like Uber but for X" - Everyone says this.
3. Delusional Projections
"$1B revenue in year 2" with no users today.
4. Team Conflicts
Co-founders who disagree in the pitch room? Hard pass.
Do your homework before wasting our time.
We definitely had some of these red flags in our early pitches. Glad you funded us anyway.
The section on founder dynamics is spot-on. I've passed on deals solely based on co-founder tension.
Half of these 'red flags' are in my portfolio companies. They're doing fine!