Why PPT-Worthy Teams Get Funded: Are Investors Really That Gullible?

Why do teams that can craft a slick pitch deck secure funding? Are investors really that naive? Don’t they realize they’re being conned?

Investors aren’t stupid. They know that a team capable of bluffing one investor can bluff others too—which means they’re less likely to hit financial crises and more likely to survive in the market.

Conversely, a team that can’t even bluff itself won’t raise capital and won’t last until tomorrow.

What investors are looking for isn’t a team that can’t pull the wool over anyone’s eyes. They want a team that plays by the rules yet knows how to bluff itself.

A team that can “bluff” has the potential to grow big and strong; following the rules keeps investment risk manageable and prevents the venture from dying in the crib due to compliance violations.

See the distinction now?

You want to avoid risk; professional investors want to manage it. They know risk can’t be dodged—gains and losses share the same root. Profit comes from risk; avoiding risk means avoiding profit. Only by managing risk can you maximize returns.