Sure. It's damn cool that you can create your wonderful product at a cost of only $1000. But should you reveal the truth to the VC? Or should you lie to them that it cost $50,000? The reason is if you tell the truth, the VC might think since your cost is so low, the valuation of the company they'll give would be low too<p>I'm using the same logic as a buyer knowing the cost of a supplier. If you were told the goods cost $1, the likelihood of you bidding $100 is lower than if you were told the goods cost $80.