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e40yesterday at 6:28 PM2 repliesview on HN

IME, it's about pushing you to overextend on the forecast, so that when you don't meet it, they get more control or claw back funds promised or given.

Fudging actual numbers is a dangerous and illegal game to play and never pays off, except in the edge cases (e.g., Enron... but usually you have to pay the Piper).


Replies

NDlurkertoday at 2:39 AM

Off topic, but I like your blog.

lumostyesterday at 8:50 PM

Interesting, this presents an meta for an early stage investor. Fund a company with a BS forecast based on your ability to make money on the claw back provisions.

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