When 'CAC' Vanishes: A Pitch That Hit the Tip of the Tongue
A real-world example of Tip of the tongue phenomenon in action
Context
A Series A startup was pitching to a syndicate of investors after a promising pilot. The CEO had rehearsed financials but was conserving the deck to emphasize narrative momentum.
Situation
Midway through a Q&A, an investor asked about the company's customer acquisition cost — a metric the CEO had tracked closely. The CEO experienced a strong feeling of knowing the term but could not immediately retrieve the acronym 'CAC' or the exact value.
The bias in action
Faced with the recall failure, the CEO stumbled, using vague language and circumlocutions instead of the precise metric. The pause and visible searching increased perceived uncertainty among investors, who interpreted the hesitation as either a gap in knowledge or evasiveness. Rather than admitting a brief lapse or quickly checking a visible slide, the CEO attempted to reconstruct the number from memory under pressure, which produced a hesitant and inconsistent answer.
Outcome
The lead investor marked down the team's preparedness and requested an extended diligence period. The syndicate reduced the initial indicative term sheet by $250,000 and postponed a decision by two weeks to re-evaluate the founding team's domain command. The pitch's momentum cooled; two angel investors declined follow-up meetings.