Don't sugar-coat your investor pitch

There's a natural tendency for entrepreneurs to make their investor pitch as attractive as possible, to make the potential investor get that "I can't miss this deal" feeling.  In fact, I coach entrepreneurs how to do precisely that.  However, it's equally important to be straight with your potential investors, and disclose any and all skeletons, risks, issues, concerns, etc.  It's quite disappointing for an investor to discover these when reading the next update by the CEO after the investment was made.  That ruins the credibility of the CEO in the eyes of the investment community, which could have long-range implications in future fund-raising efforts.