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I really hate the political correctness of business relationships. It forces people to read between the lines to try to figure out what is really going on.

The author seems to feel there is little upside to being straightforward with people and alot of potential downside. I think if you're truthful without being a jerk about it people will generally appreciate it. Those who don't are probably not the kind of people who whose opinions will greatly hurt your reputation anyways. Shouldn't better communication always lead to better chances of success?

I'm not familiar with the environment, but I generally agree. I'd much rather a VC express that he thinks I'm wasting my time than give a noncommital non-answer.

There's a more nefarious reason for the so-called "political correctness", although this may not apply to the OP. VCs never want to say no; it's easier to be noncommittal.