AS AN EARLY-STAGE ANGEL INVESTOR IT'S VERY DIFFICULT TO GET CREDIBLE INFORMATION ON THE INVESTMENT OPPORTUNITIES YOU ARE LOOKING AT:
startups exaggerate their traction figures;
products are often no more than wireframes on OFF-THE-rack engines;
founding teams use elaborate schemes to make an impression that they are domain experts when they have no deep connection to the problem they are addressing;
CEOs fail to inform investors that the core team has changed right before closing a round;
startup founders are not upfront about the education and employment backgrounds of the core team;
founders use the same tactics to sell investors on MAKING an investment as they do when selling the startup's products to customers.
there's lots of faking it till you make it.
This often leads to early-stage angel investors loosing money on their portfolios.