Warning signs when dealings with VCs and angel investors?


2

What are some things to watch out for when trying to raise money? In order to ensure you don't end up taking money from the wrong people. What red flags should I be looking at or even before the first meeting?

Venture Capital Angel Investors

asked Feb 19 '14 at 14:07
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Joel J.
31 points
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1 Answer


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Here are a few:

  • Spends too much time talking about their portfolio and background, and not enough time asking you questions.
  • Keeps offering advice before you've completed presenting your concept.
  • Doesn't ask who else you are talking to or is interested in investing.
  • Doesn't value your time when you show up on schedule and makes you wait for 30 minutes or more.
  • Offers to introduce you to other investors without first making a decision if they're down to invest themselves.
  • Hasn't done a deal in two years or longer. You want active investors.
  • Doesn't ask how much money you're looking to raise in the first meeting. Chances are they're just fishing.
  • Doesn't ask how you're going to use the money.

Always read reviews from other entrepreneurs on TheFunded and their AngelList profile in advance.

Your time is your most valuable asset, treat it as such -- avoid VCs and angels that have a bad reputation.

answered Feb 24 '14 at 15:26
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Nishank Khanna
4,265 points

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Venture Capital Angel Investors