Both pieces give candid advice on what to tell VCs — Rick when "topping off the round," Dave in general about understanding the nature of a VC conversation. They bring to mind an experience I’ve had: the entrepreneur who figured he could play different funding sources against each other by exaggerating the status of discussions with each. The exec team learned about it too late — and only when he had told so many fibs that he couldn’t keep them straight.
A couple of things. Why would anyone of quality [a category I strive to join] want to continue an affiliation with someone who uses duplicity as a central negotiating strategy? And how in the world do you keep track of all the fibs?
Turns out the entrepreneur was so scared about being bullied that he scared everyone off. And that his fibs concerned more than the funding. More next time.