Sarick Effect

  • Founder of Babble used to pitch to VCs starting with slides like "why you should not invest".
  • Also similar presentation to Disney for acquisition. "Here's why you should not buy Babble"
  • Was successful, got acquired for $40M.
  • This is the Sarick effect.
  • When presenting to people who had more power, it can be good to lead with weaknesses.
    • This disarms the audience.
    • Confidence can be a red flag.
    • "Unbridled optimism comes across as salesmanship".

Backlinks