Never Ever Ever Ever Pay to Pitch

Your startup should never have to pay $$$ to pitch to potential investors. Period.

Today, Alex Muse posted on his Texas Startup Blog about a recent encounter with an investor group asking $4,500 to pitch from ShopSavvy, one of my clients.

Alex has written about why a startup should never have to pay to pitch time and time again. Thus, the investor group would have been wise to check out his blog before asking for the cash.

Jason Calacanis authored an epic post on the topic of paying to pitch as well. It’s a great read.

Just remember that no matter how hard it is to source funds, your startup should never have to cough up its own funds.

Tags: investors, paying to pitch, raising capital

7 Responses to “Never Ever Ever Ever Pay to Pitch”

  1. PremierInterns.com February 24, 2010 at 9:57 pm #

    I absolutely agree with you 100%. PremierInterns.com is a startup and I'm always trying to figure out way to grow the company. It seems like every time I try to meet investors, they always want me to join a group and pay a significant amount of money with the promise of meeting investors. They can't even guarantee that I'll get funding. Great article and awesome job on referring your readers to other similar articles.

  2. PremierInterns.com February 24, 2010 at 4:57 pm #

    I absolutely agree with you 100%. PremierInterns.com is a startup and I'm always trying to figure out way to grow the company. It seems like every time I try to meet investors, they always want me to join a group and pay a significant amount of money with the promise of meeting investors. They can't even guarantee that I'll get funding. Great article and awesome job on referring your readers to other similar articles.

  3. AM April 11, 2010 at 11:01 am #

    The landscape of the investing arena has changed. You have funding post articles on your site, they are a pay to play entity. But, they bring success to entrepreneurs…

    Most of the investment opportunities into early-stage opportunities are garbage and not even worth a look at. Some of these entrepreneurs should be grateful and lucky they can pitch their idea to sophisticated investors (if the network they pay is legitimized). And, I think that is what needs to be clarified. If the investor group is of substance, and even if the entrepreneur does not get the capital they need, at least they can be critiqued and get the experience, which is more than 75% of the battle anyway.

    My $0.02.

    AM

  4. AM April 11, 2010 at 6:01 am #

    The landscape of the investing arena has changed. You have funding post articles on your site, they are a pay to play entity. But, they bring success to entrepreneurs…

    Most of the investment opportunities into early-stage opportunities are garbage and not even worth a look at. Some of these entrepreneurs should be grateful and lucky they can pitch their idea to sophisticated investors (if the network they pay is legitimized). And, I think that is what needs to be clarified. If the investor group is of substance, and even if the entrepreneur does not get the capital they need, at least they can be critiqued and get the experience, which is more than 75% of the battle anyway.

    My $0.02.

    AM

  5. Ryan Roberts April 12, 2010 at 8:48 am #

    Funding Post charges $350 and includes a few extras like a workshop lunch and a mag advertisement. While I wish that was reduced to sub $100, it's not shocking like the $4,500 price tag my client was given.

    Filtering of "garbage" should be a transactional cost the investor group should deal with, not entrepreneurs.

  6. Ryan Roberts April 12, 2010 at 3:48 am #

    Funding Post charges $350 and includes a few extras like a workshop lunch and a mag advertisement. While I wish that was reduced to sub $100, it's not shocking like the $4,500 price tag my client was given.

    Filtering of "garbage" should be a transactional cost the investor group should deal with, not entrepreneurs.

Trackbacks/Pingbacks

  1. The Best Legal Structure for a Startup or New Venture - BestVendor - October 25, 2011

    [...] (then Wish Them Well)Raising Capital 1. Length of NDA: 0 pages 2. Fees Paid to Pitch my Startup: $0 3. Investors: Accredited Investors 4. Structure of First Capital Raise up to $1MM: Convertible [...]

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