It’s not uncommon for entrepreneur to talk-up a big customer sale or partnership deal that is in process when trying to get a VC interested. However, presenting a potential milestone to a VC as validation of the viability of your company can come back to hurt you if the deal falls through. These blessings can turn into curses.

As a result, entrepreneurs should be careful to manage VC expectations during the due diligence phase. It’s wise to emphasize the risk associated with key deals with customers and partners. However, while presenting these risks, entrepreneurs should still position the fact that customers and partners are engaging in these conversations as a good sign that the market is interested in your business.  This way if the deal falls through you can still emphasize the potential to get future deals done, moving the VCs focus from the loss of this deal.

For example, you wouldn’t want to say, “this company is a homerun, we’re about to lock-up a deal with a Fortune 500 company.” Rather, I would suggest that you position it as “we’re already starting to speak with Fortune 500 companies. Those deals are never a certainty, but the very fact that we’re getting traction demonstrates the market’s interest in what we’re doing.” Until of course, you sign a deal, in which case you should shout the fact from the investors’ rooftops.

If you carefully manage expectations about your short-term operating performance, you will reduce the number of things that can derail a VC’s interest.