Startups That Are All Hype: 6 Red Flags

Elizabeth Holmes wore a black turtleneck. She spoke with unwavering confidence. If you were around during the Theranos hype, you would’ve invested. So would I. She had the look, the story, the media. The boardroom nodded. The world clapped.

She had everything… except a real product.

And the truth is, I’ve met so many founders just like her. Different names, same vibe: charisma over clarity, pitch over product, hype over substance. They look the part. They know the lingo. They hang out in the right places. And they build startups that seem too cool to question… until it’s too late.

So if you’re investing — your time, your money, or your reputation — here are the red flags to watch for.

Red Flag #1: No Office

You ask where they work. They say, “We’re fully remote.” What they mean is: “We don’t exist in the real world.”

Here’s the thing: a startup doesn’t need a fancy space with exposed brick and kombucha on tap — but it needs somewhere. A place with a door. A thermostat. A light bill. Somewhere a team can meet, problems get solved, and investors (or customers) can actually find them.

An office is more than square footage. It’s a financial commitment and a physical statement of intent. It means the founder is committed to showing up — not just spiritually, but physically. Even if it’s a crappy sublet with folding chairs and bad Wi-Fi — it still counts.

If they can’t commit to a place, how are they committing to a product, a team, or a vision?

Red Flag #2: The Pitch Feels Like a TED Talk

When it comes to talking about their company, they better be focused about the product or service.  If they tell you a story. Then an analogy. Then another analogy. Fifteen minutes later, you still don’t know what the product is.

They’re entertaining. They’re passionate. They talk about how huge the market is, how no one else is doing this, how it’s a once-in-a-generation opportunity. But notice what’s missing: the product. The traction. The proof.

This isn’t a startup — it’s stand-up. You’re not being pitched; you’re being performed to.

When a founder leads with market size and storytelling but avoids specifics, it usually means they’re selling potential — not reality. And the only people who get paid on potential are keynote speakers and grifters.

If they spent more time talking about their hobbies, family, past careers, RUN!

Red Flag #3: The Board and Key People Are All “Advisors”

Ask about the team, and you’ll hear a long list of impressive names: “Our head of product used to be at Google.” “We’ve got a former McKinsey partner on strategy.” “Our CFO advises five other startups.”

Translation? No one’s actually working there.

They’re all consultants, advisors, mentors, or part-time “fractionals” who show up for the pitch deck but not the product. Nobody’s in the trenches. Nobody's losing sleep over bugs, sales, or churn.

Here’s the rule: if your core team wouldn’t take a pay cut to go all in — then you shouldn’t go all in either.

A real startup needs people with equity, not just opinions. Skin in the game, not just résumés.

Red Flag #4: They’re Out at 12AM in Soho — and You’re the Investor

If they’re pitching you at midnight over cocktails — or always setting meetings at candlelit lounges and bougie rooftops — just know: this is their stage, and you are the audience.

This isn’t hustle. This is theater.

If they don’t have a whiteboard, but they have a favorite speakeasy — that’s your answer. If every pitch feels like a scene in an A24 film, run.

If you wouldn’t invest in a nightclub promoter, don’t invest in someone who acts like one.

Red Flag #5: They Never Talk About the Struggle

You’ve heard their story. But not once did they mention how hard it was. Not the sleepless nights. Not the team that quit. Not the customer who ghosted. Not the launch that flopped. Not the months they almost gave up.

No, their version is clean: "We saw a gap in the market." "We built a killer team." "We’re scaling fast." Everything is always up and to the right.

But real founders — the ones in the trenches — bleed a little when they talk. They carry the weight. They’ve screwed things up. They’ve rebuilt. They’ve lost people. They’ve made impossible decisions and still showed up.

If a founder only shares the highlight reel and none of the bloopers, there’s a good chance they haven’t really done the work — or they’re too scared to admit how much they haven’t.

Startups are supposed to be hard. If it sounds too smooth, it probably isn’t real.

Red Flag #6: You Never Meet the Team

You’ve met the founder five times. You’ve heard the pitch twice. You’ve seen the deck, the vision, the TAM slide, the vibe...

But you’ve never met anyone else.

No CTO. No head of ops. No engineer. No early hire who’s obsessed with the mission. Just one person doing all the talking — and somehow, all the building.

That’s not a company. That’s a solo act.

Early-stage teams don’t need to be big, but they need to exist. You should feel their energy. See their obsession. Hear someone else talk about the product like it’s oxygen.

If the founder can’t bring one other person to the meeting, ask yourself: Who’s actually building this thing? Who’s fighting in the trenches? Who else believes?

And if the answer is “nobody you can meet,” then the team might just be another part of the story.

Conclusion: Don’t Fall in Love with the Illusion

Startups are messy. Real ones are chaotic, exhausting, and borderline miserable in the beginning. The founder looks tired. The team is small but intense. The product is clunky but real. That’s what building actually looks like.

If everything feels too polished — the pitch, the people, the lifestyle — you’re probably not looking at a company. You’re looking at a character. A persona built for pitches, panels, and parties.

Remember:You're not investing in a founder's fashion sense, social circle, or storytelling ability.You're investing in their grit, focus, and willingness to do unglamorous work.

So before you write the check, ask yourself:“Is this a business… or just a beautifully lit mirage?”