Pay to Pitch? NEVER

Pay to Pitch? NEVER from The Startup Garage
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Your start-up should never have to pay money to pitch to potential investors. Several “angel groups” will express interest in your start-up only to inform you later that they charge a fee, sometimes up to $5,000.

Some of these wealthy angels argue that these fees act as a filter. First, a potential investor should be able to tell whether they are interested in you and your start-up without you needing to waive money in their face. Second, there are thousands of other investors that don’t require fees to filter their investment opportunities. As an angel investor, it is their job to filter their opportunities and manage their returns.

While it may seem like an extremely difficult uphill battle to source funds, your start-up should never have to empty its own pockets for a measly pitch. Angel investors are wealthy; that’s why they are in a position to invest in the first place. A pitch fee is a nominal amount of money to a true angel investor, yet a large sum to you and your start-up.  If it talks like a scam, smells like a scam and looks like a scam…it’s probably a scam! Even if one of these so called “angel groups” that charges presentation fees actually invests in the companies that pitch to them, there are plenty of other groups and private investors that do not make you take such risk.

Jason Calacanis wrote an excellent post on this topic if you would like to learn more. He also includes a list of angel groups that are under investigation for such practices.

Whether you have a question about Never Paying to Pitch, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.