Startup Lawyer | Never Ever Ever Ever Pay to Pitch
2875
single,single-post,postid-2875,single-format-standard,ajax_fade,page_not_loaded,,,wpb-js-composer js-comp-ver-4.2.3,vc_responsive

Never Ever Ever Ever Pay to Pitch

Posted 03 Feb 2010

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.

7 Comments
  • PremierInterns.com
    Posted at 21:57h, 24 February Reply

    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.

  • PremierInterns.com
    Posted at 16:57h, 24 February Reply

    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.

  • AM
    Posted at 11:01h, 11 April Reply

    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

  • AM
    Posted at 06:01h, 11 April Reply

    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

  • Ryan Roberts
    Posted at 08:48h, 12 April Reply

    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.

  • Ryan Roberts
    Posted at 03:48h, 12 April Reply

    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.

  • The Best Legal Structure for a Startup or New Venture - BestVendor
    Posted at 09:52h, 25 October Reply

    [...] (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 [...]

Post A Comment