This Week in Startups HeadSpin accused of $80M fraud, housing startup irks NIMBYs + Not Boring’s Packy McCormick | E1272
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Aug 26, 2021 
Packy McCormick, founder of the insightful Not Boring newsletter, shares his experience from Breather, a competitor to WeWork, and the challenges faced in shaping a flexible workspace. He dives into the controversial fractional ownership model of the housing startup Pacaso and its backlash from local communities. Packy also sheds light on the evolving crypto landscape, providing a captivating explanation of its future. This engaging discussion reveals the intricate dance between innovation, community impact, and ethical financial practices.
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HeadSpin Fraud
- HeadSpin's CEO, Manish Lakwani, allegedly inflated the company's valuation to over $1 billion.
- He did this by including potential customers, past customers, and exaggerating existing customer revenue.
Focus on Reality
- Focus on presenting the reality of your revenue, especially the last three months.
- Avoid projections, pipeline discussions, or hypothetical growth scenarios.
Unraveling the Fraud
- Lakwani's fraud was uncovered by HeadSpin's board, likely through internal investigation or math.
- Diligence is important, but altered records can deceive even thorough investors.