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I sit in on a lot of pitch meetings. In fact, I’ve probably listened to several hundred pitches from startup founders since I began angel investing.

More and more lately, those meetings have left me feeling bombarded by buzzwords. Blockchain, cloud computing, AI, machine learning… what does it all mean? And why does it seem like every startup in Silicon Valley is trying to shoehorn the lingo into their elevator pitch?

I’ll let you in on an industry secret: founders use these buzzwords excessively, and sometimes even incorrectly, in order to confuse and excite investors.

Right now, for example, everybody’s talking about blockchain technology. Blockchain is expected to revolutionize virtually every industry in the coming years. As a result, angels, VCs, and investment banks alike are throwing obscene amounts of money into companies claiming to use the tech.

Here’s the problem: some businesses have no good reason to be using blockchain, but are doing it anyway, purely for the benefit of generating investor hype. Add to that the fact that many investors have no idea what blockchain is or how it works.

My personal opinion? Throwing around buzzwords is a cheap trick. If a founder can’t explain what they’re doing in a simple way, they won’t be able to explain it to customers either. And that’s a problem when we’re talking about new and emerging tech. After all, if consumers can’t understand the need to use blockchain, why would they pay a premium for it?

It’s very rare that I invest in a founder who tries to talk above me, whether with buzzwords or overly complicated vocabulary. It doesn’t impress me – in fact, it makes me doubt the strength of the business overall. What are the founders trying to hide under all this confusing language?

Instead, I hold startups up against my 1,000X Formula – a super-simple equation I developed to quickly and easily identify deals that have the potential to 1,000X my investment. I’ve made millions of dollars just by following this formula – and it’s a heck of a lot faster than sitting through hundreds of pitch meetings a year.

Still, even with a strategy, it’s easy to get tripped up by buzzwords. Check out the video to see what I mean.

Until next time,

Neil Patel


Comments

12 responses to “What Buzzwords Really Mean for Your Investments”

  1. Thanks for heads up. Next up charge will be some quantum computing algorithm to identify potential cloud computing or AI breakthru

  2. Hello,
    I also joined for life, paid the full $495,not realizing all of the consequences. Please refund my lifetime elite status and return me to the 2 yr membership status.

    Thank you.
    Al Duska

  3. I just joined and looking forward to the ride. I hope to be better off financially that where the last 70 years has taken me. Thanks Neil, Keep it coming. Mike

  4. Just joined lifetime membership. To early to make comment but am hoping for a great outcome to my new venture.

  5. I just joined went from $79 to $495. It’s too early to complain. Let’s just stay on the route and see what Mr Patel offers us. We have his word, 60 days trial or full money refund.

  6. Mike, Neil, Robert:
    How do you answer the above issues.
    People are running away.

    I’m not seeing the things – ” I assumed were in the program.” But I am holding on, learning what I can.
    Figured out that were NOT going to ride on you coattails. Need to find our own investments.
    Have been to a couple of events, looking at opportunities. Not comfortable to invest, yet.
    Takes a lot of time.

  7. It would be nice if we could like peoples comments so that we dont have to repost the same comment over and over and over.
    I agree so far this has been a really rough start with this new adventure but thats just it its new and things that are new need tome to develope. 500 dollars is pockect change. Give constructive criticism to Mr. Patel i am certain he or his staff is listening and will make some course corrections. Else this wont be up here long. With the internet people have become hyper aware of companies but rarely do you get to see the mess that start up companies really are (just like this one) before they actually gain ground and meet there goal. I have faith Mr. Patel will push this thru the mess with his team and make it worth the value. And remeber the little price we are paying now is because they are not well polished yet. Just my 2 cents. Good investors see the potential and offer support to get the money you are lookingnfor. If they had everything together and was a star you would never have the same opportunities. Be patient.

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