What’s the best way to talk about business risks?

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

Sometimes a competitor will deliberately threaten you with a lawsuit just as you start fundraising, because they know you’ll have to disclose the threat to potential investors and they hope this will make it harder for you to raise money. If this happens it will probably frighten you more than investors. Experienced investors know about this trick, and know the actual lawsuits rarely happen. So if you’re attacked in this way, be forthright with i… (read more)