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Be Wary of Capital Raisers Who Cold Call You

March 10, 2020

Be wary of companies or individuals that claim they will find capital for you, especially if they are cold calling.  All to often they are simply in the business of getting money FROM you. Here are some warning signs:

  • A poorly crafted website often with typos and grammatical mistakes indicating that it was hastily put together;
  • Limited information about principals and what information that is available gives little indication of their ability to raise capital;
  • They are immediately interested in your project or business and claim early on that they have several interested investors even though they’ve been given little or no information and you have spoken with none of their principals;
  • They are unable to provide any references of other fundings they completed and often claim they can’t because they are under non-disclosure agreements (NDA’s);
  • They are unable to provide a standard finders fee agreement and instead offer a verbal or paragraph long term sheet (often with errors);

For more information on raising capital and handling the other unique challenges of running a small business, visit our site at https://www.riskebiz.com. Register to receive a free copy of our upcoming “Small Business Survival Guide” book and connect with accredited investors to potentially fund your startup.

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